An auditor may be asked to report on the client's internal controls.Which one of the following is NOT a reason why the auditor would be asked to prepare this?
A) It is part of the financial report audit.
B) It is required by contractual obligation on the client.
C) It is required by regulatory obligation on the client.
D) It is required by statutory obligation on the client.

Question

Quizplus · Accepted Answer

Reporting on a client's internal controls may be a separate engagement from the financial report audit. While audits of financial statements may involve understanding and testing internal controls to plan and perform the audit effectively, preparing a specific report solely on the internal controls is not inherently part of the financial report audit itself. It is more commonly required due to contractual, regulatory, or statutory obligations.

An Auditor May Be Asked to Report on the Client's