To what extent do auditors typically rely on internal controls of their public company clients?
A) extensively
B) only very little
C) infrequently
D) never

Question

Quizplus · Accepted Answer

Auditors typically rely extensively on the internal controls of their public company clients. These controls help prevent, detect and correct errors and fraud within the company's financial reporting. The auditor's reliance on internal controls helps to reduce the amount of substantive testing that is necessary to ensure the accuracy of the financial statements.

To What Extent Do Auditors Typically Rely on Internal Controls