It is important for the auditor to consider the competence of the audit client's employees because their competence bears directly and importantly upon the:
A) cost/benefit relationship of the system of internal control.
B) achievement of the objectives of the system of internal control.
C) timing of the tests to be performed.
D) comparison of recorded accountability with assets.

Question

Quizplus · Accepted Answer

The competence of the audit client's employees is crucial for the achievement of the objectives of the system of internal control. If the employees are not competent, there may be a higher risk of control failures, errors, or fraud, which can negatively affect the reliability of the financial information. The auditor needs to assess the competence of the client's employees to determine the extent of reliance on the system of internal control and the nature, timing, and extent of audit procedures.

It Is Important for the Auditor to Consider the Competence