The study of the client's internal control by the auditor is:
A) required by the ASX for listed companies.
B) recommended by the Corporations Act.
C) required by auditing standards.
D) required by accounting standards.

Question

Quizplus · Accepted Answer

The study of the client's internal control by the auditor is required by auditing standards. This is because internal control is a fundamental aspect of the audit process and the auditor must assess the effectiveness of the client's internal control in order to evaluate the risk of material misstatement in the client's financial statements.

The Study of the Client's Internal Control by the Auditor