As part of gaining an initial understanding of internal control, an auditor is required to do all of the following except:
A)consider factors that affect the risk of material misstatement.
B)ascertain whether internal control policies and procedures have been placed in operation.
C)identify the types of potential misstatements that can occur.
D)obtain knowledge about the operating effectiveness of the internal control.

Question

Quizplus · Accepted Answer

Obtaining knowledge about the operating effectiveness of internal control is a more detailed procedure that typically occurs after the initial understanding of internal control has been gained. The initial phase focuses on understanding the design of internal controls and whether they have been implemented, rather than assessing how effectively they operate.

As Part of Gaining an Initial Understanding of Internal Control