In gaining the understanding of a business process,the auditor will be concerned with: (i)how data is handled (ii)the steps that are followed (iii)the internal controls that are built into the process (iv)the potential for errors to occur that could result in the financial statements being materially misstated.
A)only (i)(ii)
B)only (ii)(iii)
C)only (i)(ii)(iv)
D)(i)(ii)(iii)(iv)

Question

Quizplus · Accepted Answer

The auditor will be concerned with all the options given, including how data is handled, the steps followed, the internal controls built into the process, and the potential for errors that could result in the financial statements being materially misstated. Understanding all of these elements is essential for evaluating the effectiveness of the business process and determining any potential risks to the company. Therefore, option D is the best choice.

In Gaining the Understanding of a Business Process,the Auditor Will