On financial statement audits,it is required that the auditors obtain an understanding of internal control,including:
A)Its operating effectiveness.
B)Whether it has been implemented (placed in operation).
C)Performing tests of controls for all material controls.
D)Its ability to provide reasonable assurance.

Question

Quizplus · Accepted Answer

Auditors are required to understand whether the internal control system has been implemented as part of their audit process. This involves assessing if the controls are in place and have been put into operation. Understanding the operating effectiveness, performing tests of controls for all material controls, and its ability to provide reasonable assurance are further steps that may be taken depending on the auditor's assessment of risk and the audit approach, but they are not required for all audits.

On Financial Statement Audits,it Is Required That the Auditors Obtain