The primary objective of procedures performed to obtain an understanding of the entity's internal control is to provide an auditor
A) The knowledge necessary for audit planning.
B) The evidential matter to use in assessing inherent risk.
C) A basis for modifying tests of controls.
D) An evaluation of the consistency of application of management's policies.

Question

Quizplus · Accepted Answer

The primary objective of procedures performed to obtain an understanding of the entity's internal control is to provide an auditor the knowledge necessary for audit planning. This knowledge will enable an auditor to assess risk, design audit procedures, and evaluate the control environment.

The Primary Objective of Procedures Performed to Obtain an Understanding