Once the auditor is satisfied with the transaction-related controls in the revenue and accounts receivable area, it is not important for the auditor to gain an understanding of the controls that exist over the ending account balances and the related disclosures made in the financial statements.

Question

Quizplus · Accepted Answer

It is important for the auditor to gain an understanding of the controls over the ending account balances and related disclosures as they are an important part of the financial statements and can materially affect the overall financial statements.

Once the Auditor Is Satisfied with the Transaction-Related Controls in the Revenue