Obtaining an understanding of the internal control and assessing control risk:
A) may be performed concurrently in an audit.
B) needs to be documented only if the assessed level is less than high.
C) is possible but not necessary in performing an audit.
D) is necessarily sequential audit steps.

Question

Quizplus · Accepted Answer

Obtaining an understanding of the internal control and assessing control risk are often performed concurrently in an audit. This is because the auditor needs to understand the internal control in order to assess control risk, and vice versa. It is also important to note that documenting the assessment of control risk is required regardless of the level assessed. While the steps may be sequential in some cases, they can also occur at the same time. Therefore, choice A is the best answer.

Obtaining an Understanding of the Internal Control and Assessing Control