The auditor's primary purpose in auditing the client's system of internal control over financial reporting is
A) to prevent fraudulent financial statements from being issued to the public.
B) to evaluate the effectiveness of the company's internal controls over all relevant assertions in the financial statements.
C) to report to management that the internal controls are effective in preventing misstatements from appearing on the financial statements.
D) to efficiently conduct the Audit of Financial Statements.

Question

Quizplus · Accepted Answer

The auditor's primary purpose in auditing the client's system of internal control over financial reporting is to evaluate the effectiveness of the company's internal controls over all relevant assertions in the financial statements. This helps the auditor determine the level of reliance that can be placed on the company's internal control system to obtain audit evidence about the accuracy and completeness of the financial statements. Preventing fraudulent financial statements from being issued to the public is a secondary objective, while reporting to management that internal controls are effective is not the primary purpose. Efficiency is also not the primary purpose, but rather an important consideration.

The Auditor's Primary Purpose in Auditing the Client's System of Internal