After obtaining an understanding of a client's financial reporting control activities, the auditor would next:
A)test the client's control activities.
B)assess the final control risk.
C)document the understanding obtained.
D)plan the remainder of the audit work.

Question

Quizplus · Accepted Answer

Once the auditor has obtained an understanding of the client's financial reporting control activities, the next step is to document the understanding obtained. This documentation serves as a basis for planning the remainder of the audit work, testing the client's control activities, and assessing the final control risk. However, documenting the understanding is the necessary first step before any of these subsequent procedures can be performed.

After Obtaining an Understanding of a Client's Financial Reporting Control