The reliability of a client's internal documentation is most affected by which of the following?
A)The auditor's independence.
B)Management's motivation to misstate accounts.
C)The type of audit report that will be issued.
D)Management's ability to understand generally accepted audit standards.

Question

Quizplus · Accepted Answer

The reliability of a client's internal documentation can be significantly affected by management's motivation to misstate accounts. If the management is motivated to manipulate the financial statements for personal gain or to meet targets, they may intentionally alter the internal documentation or produce false documents to support their actions. This can lead to unreliable internal documentation being provided to the auditor. The other options do not directly relate to the reliability of internal documentation.

The Reliability of a Client's Internal Documentation Is Most Affected