It is important for the CPA to consider the competence of the clients' personnel because their competence bears directly and importantly upon the:
A) cost/benefit relationship of the system of internal control.
B) achievement of the objectives of internal control.
C) comparison of recorded accountability with assets.
D) timing of the tests to be performed.

Question

Quizplus · Accepted Answer

The competence of the clients' personnel is important for the achievement of the objectives of internal control. If the personnel are not competent, they may not be able to understand or properly execute the controls in place, leading to increased risk of errors or fraud. This can ultimately impact the effectiveness of the internal control system.

It Is Important for the CPA to Consider the Competence