Which of the following forms of evidence is used when gaining an understanding of the client and its internal control systems?
A) verbal
B) computational
C) physical
D) external confirmations

Question

Quizplus · Accepted Answer

When gaining an understanding of the client and its internal control systems, verbal evidence is commonly used through discussions with management and staff. This allows auditors to gain insights into the company's operations, control systems, and potential areas of risk. While computational and physical evidence may also play a role in the audit, they are not specifically used to gain an understanding of internal controls. External confirmations, meanwhile, are typically used to verify information provided by the client rather than to gain understanding of their internal controls.

Which of the Following Forms of Evidence Is Used When