A key internal control which the auditor should determine if the client has procedures designed to identify key provisions in employment contracts, compensation, and bonus plans which may require financial statement disclosure.

Question

Quizplus · Accepted Answer

Identifying key provisions in employment contracts, compensation, and bonus plans that may require financial statement disclosure is an important internal control that the auditor should determine if the client has in place. This is because such disclosures have an impact on the financial statements and should be accurately reflected in them. Therefore, the answer is true.

A Key Internal Control Which the Auditor Should Determine If