Which of the following will an auditor perform to better understand a client's internal control over accounting systems?
A)An auditor will re-test subsequent year working papers.
B)An auditor will review previous year working papers.
C)An auditor will copy previous year working papers.
D)An auditor will re-draft subsequent year working papers.

Question

Quizplus · Accepted Answer

Reviewing previous year working papers will provide the auditor with a better understanding of the client's internal control over accounting systems, as they will be able to see what internal control procedures were in place and how effective they were in the previous year. Re-testing or re-drafting subsequent year working papers may be necessary, but it would not necessarily provide a better understanding of the client's internal control systems. Copying previous year working papers is not appropriate as the auditor would need to update the information for the current year.

Which of the Following Will an Auditor Perform to Better