The documentation of an auditor's understanding of internal controls:
A)is optional.
B)must be exclusively in narrative, questionnaires, or flowchart form.
C)must include flowcharts.
D)can include any combination of narratives, questionnaires, or flowcharts.

Question

Quizplus · Accepted Answer

The auditor's understanding of internal controls can be documented using any combination of narratives, questionnaires, or flowcharts. While flowcharts can be helpful in understanding the flow of internal controls, they are not mandatory and may not be necessary in all situations. Therefore, it is best to use a combination of methods that best suit the particular situation.

The Documentation of an Auditor's Understanding of Internal Controls