As part of understanding the internal control, an auditor is not required to:
A)consider factors that affect the risk of material misstatement.
B)ascertain whether internal control policies and activities have been placed in operation.
C)identify the types of potential misstatements that can occur.
D)obtain knowledge about the operating effectiveness of the client's internal control activities.

Question

Quizplus · Accepted Answer

Understanding the internal control system as part of an audit involves considering factors that affect the risk of material misstatement, ascertaining whether internal control policies and activities have been implemented, and identifying the types of potential misstatements. However, obtaining knowledge about the operating effectiveness of the client's internal control activities goes beyond understanding the system and involves testing the controls, which is not required for all audits.

As Part of Understanding the Internal Control, an Auditor Is