Which of the following best describes how the detailed audit plan of a financial statement auditor compares with the audit client's comprehensive internal audit plan?
A) The comprehensive internal audit plan covers areas that an external auditor would normally not review.
B) The comprehensive internal audit plan is more detailed although it covers fewer areas than an external auditor would normally cover.
C) The comprehensive internal audit plan is substantially identical to the audit program used by an external auditor because both review substantially identical areas.
D) The comprehensive internal audit plan is less detailed and covers fewer areas than an external auditor would normally review.

Question

Quizplus · Accepted Answer

The comprehensive internal audit plan covers areas that an external auditor would normally not review. The internal audit plan is designed to assess the effectiveness of internal controls and identify potential areas of risk for the organization, whereas the external auditor's primary focus is on the financial statements and related disclosures. Therefore, the external auditor's audit plan will be more focused on the financial statements and less on operational areas, which are more likely to be covered by the internal audit plan.

Which of the Following Best Describes How the Detailed Audit