The more complex the client's operations and its internal controls, _______.
A)the lower inherent risk is assessed by the auditor
B)the less audit staff should be assigned to the client engagement
C)the more experienced the auditor who performs the work needs to be
D)the more inexperienced the auditor who performs the work needs to be

Question

Quizplus · Accepted Answer

The more complex the client's operations and internal controls, the more experienced the auditor who performs the work needs to be. This is because the auditor needs to have the necessary knowledge and skills to understand and evaluate the effectiveness of the client's internal controls and perform an accurate audit. Lowering inherent risk or assigning less staff to the engagement would not be appropriate responses to a complex client. Inexperience in the auditor performing the work could lead to errors or omissions in the audit.

The More Complex the Client's Operations and Its Internal Controls