The auditor's understanding of the client's internal control is documented to substantiate:
A)conformity of the accounting records with the accounting standards.
B)representation as to adherence to requirements of management.
C)compliance with the auditing standards.
D)the fairness of the financial report presentation.

Question

Quizplus · Accepted Answer

The auditor's understanding of the client's internal control is documented primarily to ensure compliance with auditing standards, which require auditors to assess and understand the internal control systems as part of their audit process. This helps in planning the audit and determining the nature, timing, and extent of auditing procedures.

The Auditor's Understanding of the Client's Internal Control Is Documented