One of the reasons that an auditor must be competent is so that they can
A)understand the engagement risks and the criteria used by the client.
B)explain to staff how the bookkeeping should be done.
C)record the transactions properly for the underlying records.
D)capture the information properly in the computer files.

Question

Quizplus · Accepted Answer

Understanding engagement risks and criteria used by the client is a critical part of auditing. Without competence, the auditor may not be able to correctly assess and evaluate the risks involved with the engagement or evaluate whether the client's criteria are reasonable and appropriate. Additionally, being competent allows the auditor to provide reliable and meaningful information to stakeholders. Choices B, C, and D do not fully address the importance of competence in auditing.

One of the Reasons That an Auditor Must Be Competent