In the audit of financial statements,all internal controls of the entity are considered of equal importance.

Question

Quizplus · Accepted Answer

All internal controls are not considered of equal importance in the audit of financial statements. The auditor must focus on the internal controls that are relevant to the financial reporting process and that are likely to prevent or detect material misstatements. Therefore, some controls may be considered more important than others depending on their impact on the financial statements.

In the Audit of Financial Statements,all Internal Controls of the Entity