The auditor's primary objective to obtain an understanding of internal control is that it must provide:
A) a basis for constructive suggestions to the client for improving the accounting system.
B) a method for safeguarding assets, checking the accuracy and reliability of accounting data, promoting operational efficiency and encouraging adherence to prescribed managerial policies.
C) reasonable protection against client fraud and defalcations by client employees.
D) an understanding that is sufficient for the auditor to plan the audit adequately.

Question

Quizplus · Accepted Answer

The primary objective of obtaining an understanding of internal control is to plan the audit adequately. While internal control may also provide a basis for suggestions to improve the accounting system and promote operational efficiency, the primary purpose is to ensure the audit is planned effectively. Internal control can also provide reasonable protection against fraud and defalcations, but this is not the primary objective.

The Auditor's Primary Objective to Obtain an Understanding of Internal