An engagement to express an opinion on a system of internal control will generally:
A)only require those procedures already applied in assessing control risk during a financial statement audit.
B)increase the reliability of the financial statements that have already been audited.
C)be more extensive in scope than the assessment of control risk made during a financial statement audit.
D)be more limited in scope than the assessment of control risk made during a financial statement audit.

Question

Quizplus · Accepted Answer

An engagement to express an opinion on a system of internal control will generally be more extensive in scope than the assessment of control risk made during a financial statement audit. This is because such an engagement requires the auditor to evaluate the design and operating effectiveness of the system of internal control as a whole, whereas during a financial statement audit, the auditor only assesses the risk of material misstatements in the financial statements. The engagement to express an opinion on a system of internal control aims to provide assurance on the effectiveness of controls in achieving the company's objectives.

An Engagement to Express an Opinion on a System of Internal