When identifying audit objectives and existing controls,
A) audit objectives are identified for classes of transactions, account balances, and presentation and disclosure.
B) the auditor identifies controls to satisfy each objective.
C) it is helpful for the auditor to use the five control activities as reminders of controls.
D) all of the above.

Question

Quizplus · Accepted Answer

Audit objectives are identified for classes of transactions, account balances, and presentation and disclosure. The auditor then identifies controls to satisfy each objective. It is helpful for the auditor to use the five control activities (establishing responsibility, maintaining adequate documentation, segregating duties, physically controlling assets, and independent verification) as reminders of controls. Therefore, all of the above choices are correct.

When Identifying Audit Objectives and Existing Controls