If, when obtaining an understanding of control activities of a relatively small client, the auditor identified no control activities, the auditor would probably reassess whether the client is auditable.

Question

Quizplus · Accepted Answer

If the auditor identifies no control activities in a small client, it could indicate that the client lacks proper controls or that the controls are not appropriately documented. This could raise concerns about the reliability of the financial statements and may require the auditor to reassess whether the client is auditable.

If, When Obtaining an Understanding of Control Activities of a Relatively