As a first time auditor of a small company,what will be your strategy to obtain an understanding of internal controls of the company?
A)as the company is small,defer the procedure to understand internal controls until next year
B)conduct the procedure of understanding internal controls in the current year
C)rely on the verbal assurance from management that internal control exists
D)get the company employees to test the internal controls for you

Question

Quizplus · Accepted Answer

As a first-time auditor, it is important to conduct the procedure to understand internal controls in the current year. This will ensure that the auditor is able to identify any weaknesses or gaps in the internal control system of the company, and provide recommendations for improvement. Relying on verbal assurance from management or deferring the procedure until next year can be risky and may result in the auditor missing significant control weaknesses or noncompliance issues. Asking company employees to test the internal controls can also lead to conflicts of interest and compromise the independence of the auditor. Therefore, option B is the best choice.

As a First Time Auditor of a Small Company,what Will