An auditor needs to understand a company's internal controls in order to anticipate the types of material misstatements that may occur.

Name: An auditor needs to understand a company's internal controls in order to anticipate the types of material misstatements that may occur.
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Question

Quizplus · Accepted Answer

Understanding a company's internal controls helps the auditor to identify the areas where there is a higher risk of material misstatements, and design audit procedures accordingly to mitigate those risks.

An Auditor Needs to Understand a Company's Internal Controls in Order