The third generic step in a financial statement audit could benefit from:
A)Interviews.
B)Flowcharts.
C)Both interviews and flowcharts.
D)Neither interviews nor flowcharts.

Question

Quizplus · Accepted Answer

The third generic step in a financial statement audit is to obtain an understanding of internal control. Both interviews and flowcharts can be useful in achieving this objective. Interviews can provide valuable information about how a particular process is performed, how transactions flow through the system, and who is responsible for each step. Flowcharts can visually represent the process and help auditors identify potential control weaknesses or inefficiencies. Therefore, both interviews and flowcharts could benefit the third generic step in a financial statement audit.

The Third Generic Step in a Financial Statement Audit Could