The objective of understanding internal control and assessing control risk in an IT system is to:
A) aid in determining the audit evidence that should be accumulated.
B) evaluate management's efficiency in designing and using the IT system.
C) gain an understanding of the computer hardware and software.
D) determine if the audit firm must have an IT auditor on the team.

Question

Quizplus · Accepted Answer

Understanding internal control and assessing control risk in an IT system helps auditors to determine the audit evidence that should be accumulated in order to provide a reasonable assurance opinion on financial statements. This includes evaluating the effectiveness of IT controls and determining the extent of testing required to address any control weaknesses. The other choices are not the main objective of assessing control risk in an IT system.

The Objective of Understanding Internal Control and Assessing Control Risk