Once an understanding of the client's internal control is obtained that is sufficient for audit planning, then the auditor must first assess:
A) the level of control risk supported by the understanding obtained.
B) whether a lower level of control risk could be supported.
C) whether the financial statements are auditable.
D) the level of control risk.

Question

Quizplus · Accepted Answer

The auditor must first assess whether the financial statements are auditable to ensure that there is a basis for conducting the audit.

Once an Understanding of the Client's Internal Control Is Obtained