Management's documentation is not a major source of information for auditors in gaining an understanding of the design of internal controls.

Question

Quizplus · Accepted Answer

Management's documentation, such as policies and procedures manuals, is a significant source of information for auditors to obtain an understanding of the design of internal controls. This information helps auditors plan and perform audit procedures to assess the effectiveness of the controls in preventing and detecting material misstatements in the financial statements.

Management's Documentation Is Not a Major Source of Information for Auditors