After obtaining an understanding of a client's financial reporting control activities,the auditor would next
A) Test the client's control activities.
B) Assess the final control risk.
C) Document the understanding obtained.
D) Plan the remainder of the audit work.

Question

Quizplus · Accepted Answer

After obtaining an understanding of a client's financial reporting control activities, the auditor would next document the understanding obtained. This step is necessary to ensure that the auditor has a complete understanding of the client's control activities and that this understanding is properly documented for future reference. Once the understanding is documented, the auditor can move on to testing the client's control activities, assessing the final control risk, and planning the remainder of the audit work.

After Obtaining an Understanding of a Client's Financial Reporting Control