Most audits of a company are done annually by the same audit firm.Except for initial engagements, the auditor begins the audit with a great deal of information about the client's internal controls developed in prior years.Because systems and controls usually don't change frequently:
A) it eases the burden on the auditor's requirement to do a complete study of the controls this year.
B) the auditor can skip the evaluation of this area on repeat engagements.
C) it is sufficient for the auditor just to inquire of the client whether the controls have been changed since last year.
D) this information can be updated and carried forward to the current year's audit.

Question

Quizplus · Accepted Answer

This information can be updated and carried forward to the current year's audit. While the auditor may not need to do a complete study of the controls every year, it is still important to update and verify the information from previous years to ensure its continued accuracy. The auditor should also inquire about any changes or updates to the internal controls since the last audit. Skipping the evaluation of this area or simply relying on the client's word about changes would not provide sufficient assurance for the auditor.

Most Audits of a Company Are Done Annually by the Same