In the audit of financial statements,an auditor's primary consideration regarding an internal control policy or procedure is whether the policy or procedure
A) Reflects management's philosophy and operating style.
B) Affects management's financial statement assertions.
C) Provides adequate safeguards over access to assets.
D) Enhances management's decision-making processes.

Question

Quizplus · Accepted Answer

The primary consideration of an internal control policy or procedure in the audit of financial statements is whether it affects management's financial statement assertions, meaning the policies and procedures in place are designed to provide reasonable assurance that financial statements are fairly stated. While management philosophy and safeguards over access to assets are also important aspects of internal control, they are not the primary consideration in an audit. Enhancing management's decision-making processes is not directly relevant to the audit of financial statements.

In the Audit of Financial Statements,an Auditor's Primary Consideration Regarding