A secondary objective of the auditor's study and evaluation of internal control is that the study and evaluation provide
A)a basis for constructive suggestions concerning improvements in internal control.
B)a basis for reliance on the accounting system.
C)an assurance that the records and documents have been maintained in accordance with existing company policies and procedures.
D)an indication that management and employees are trustworthy.

Question

Quizplus · Accepted Answer

The primary objective of the auditor's study and evaluation of internal control is to assess the effectiveness of the internal control system in preventing and detecting material misstatements in the financial statements. However, a secondary objective is to provide constructive suggestions for improving internal control. This helps management strengthen the internal control system and reduce the likelihood of errors or fraud. Options B, C, and D are not accurate objectives of the auditor's study and evaluation of internal control.

A Secondary Objective of the Auditor's Study and Evaluation of Internal