In planning an audit of a new client,an auditor most likely would consider the methods used to process accounting information because such methods
A) Influence the design of internal controls.
B) Affect the auditor's overall materiality levels.
C) Assist in evaluating the planned audit assertions.
D) Determine the auditor's acceptable level of audit risk.

Question

Quizplus · Accepted Answer

The methods used to process accounting information have a direct impact on the design of internal controls within the organization. Therefore, it is important for the auditor to consider these methods when planning the audit. Moreover, this consideration helps the auditor to assess the risk of material misstatement in financial statements, design and execute audit procedures, and gather sufficient and appropriate audit evidence.

In Planning an Audit of a New Client,an Auditor Most