The documentation of an auditor's understanding of internal controls
A) Is optional.
B) Must be exclusively in narrative, questionnaires, or flowchart form.
C) Must include flowcharts.
D) Can include any combination of narratives, questionnaires, or flowcharts.

Question

Quizplus · Accepted Answer

The documentation of an auditor's understanding of internal controls can include any combination of narratives, questionnaires, or flowcharts. The choice of which method(s) to use will depend on the auditor's judgment and the complexity of the internal controls being assessed. However, flowcharts can be helpful in providing a visual representation of the controls and their interactions, so they may be included if appropriate.

The Documentation of an Auditor's Understanding of Internal Controls