Which of the following is not a reason why an auditor obtains an understanding of internal controls?
A)Understanding the entity's internal control is a requirement of professional auditing standards.
B)The auditor must use the information to assess the risk of material misstatements arising from the lack of internal control.
C)It is the primary basis for the audit report.
D)It assists the auditor in designing the nature,timing,and extent of further audit procedures.

Question

Quizplus · Accepted Answer

While understanding internal controls is an important part of an audit, it is not the primary basis for the audit report. The audit report is based on the results of the audit procedures and the auditor's assessment of the entity's financial statements. The other three options are all valid reasons for obtaining an understanding of internal controls.

Which of the Following Is Not a Reason Why an Auditor