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 of control risk is less than high.
C)is possible but not necessary in performing an audit.
D)are necessarily sequential audit steps.

Question

Quizplus · Accepted Answer

Obtaining an understanding of internal control and assessing control risk are often performed at the same time in an audit. This allows auditors to determine the level of control risk and adjust their audit procedures accordingly. While it is possible to perform an audit without assessing control risk or understanding internal control, this would not be a thorough or effective audit. The documentation of these steps is required regardless of the final assessed level of control risk. Therefore, Option A is the correct choice.

Obtaining an Understanding of the Internal Control and Assessing Control