For financial statement audits, auditors need to understand controls that are relevant to the audit in order to
A) identify and assess the risks of material misstatements.
B) perform preliminary analytical procedures.
C) detect fraud.
D) assess inherent risk.

Question

Quizplus · Accepted Answer

In order to assess the risks of material misstatements, auditors need to understand the controls in place that could mitigate such risks. This understanding is necessary for auditors to effectively plan and execute the audit procedures.

For Financial Statement Audits, Auditors Need to Understand Controls That