The auditor's primary objective to obtain an understanding of internal control is that it must provide:
A) reasonable protection against client fraud and defalcations by client employees.
B) an understanding that is sufficient for the auditor to plan the audit adequately.
C) a basis for constructive suggestions to the client for improving the accounting system.
D) a method for safeguarding assets, checking the accuracy and reliability of accounting data, promoting operational efficiency, and encouraging adherence to prescribed managerial policies.

Question

Quizplus · Accepted Answer

The primary objective of obtaining an understanding of internal control is to plan the audit adequately. This includes determining the nature, timing, and extent of audit procedures that are required to achieve audit objectives. While internal control can help to prevent client fraud and defalcations, provide constructive suggestions, and safeguard assets, these are not the primary objectives of gaining an understanding of internal control.

The Auditor's Primary Objective to Obtain an Understanding of Internal