When considering internal controls, an important point to consider is that:
A)auditors can ignore controls affecting internal management information.
B)auditors are concerned with the client's internal controls over the safeguarding of assets if they affect the financial statements.
C)management is responsible for understanding and testing internal control over financial reporting.
D)companies must use the COSO framework to establish internal controls.

Question

Quizplus · Accepted Answer

Auditors are primarily concerned with the client's internal controls over the safeguarding of assets if they affect the financial statements. Management is responsible for understanding and testing internal control over financial reporting, and while COSO framework is a commonly used framework for establishing internal controls, it is not necessarily required for all companies. It is important for auditors to ensure that internal controls are in place to provide reasonable assurance that the financial statements are free from material misstatement.

When Considering Internal Controls, an Important Point to Consider Is