Which one of the following statements regarding auditor documentation of the client's internal controls is correct?
A) No one particular form of documentation is necessary, and the extent of documentation may vary.
B) No documentation is necessary, although it is desirable.
C) Documentation must include procedural write-ups.
D) Documentation must include flowcharts.

Question

Quizplus · Accepted Answer

There is no one specific form or extent of documentation required for auditor documentation of the client's internal controls. The auditor should use professional judgment to determine the appropriate level of documentation based on factors such as the size and complexity of the entity, as well as the assessed level of risk. However, some form of documentation is necessary for the auditor to support their conclusions and findings.

Which One of the Following Statements Regarding Auditor Documentation of the Client's