Which one of the following statements regarding auditor documentation of the client's internal controls is correct?
A) Documentation must include procedural write- ups.
B) Documentation must include flowcharts.
C) No documentation is necessary, although it is desirable.
D) No one particular form of documentation is necessary, and the extent of documentation may vary.

Question

Quizplus · Accepted Answer

There is no one prescribed form of documentation for auditors to use when documenting a client's internal controls. The extent of documentation may also vary based on factors such as the complexity of the control environment and the level of risk involved. However, auditors are required to document their understanding of the internal control environment and their evaluation of its effectiveness. Procedural write-ups and flowcharts may be useful forms of documentation, but they are not required.

Which One of the Following Statements Regarding Auditor Documentation of the Client's