For internal controls that are relevant to the audit,the auditor should
A)understand incentives of the company to misstate the financial statements
B)identify the relevant financial statement accounts with the greatest potential for misstatements
C)understand the design of the controls and the implementation of the controls
D)design audit procedures to determine that the accounts are fairly presented according to the applicable financial reporting framework

Question

Quizplus · Accepted Answer

The auditor should understand the design and implementation of internal controls to assess their effectiveness in preventing or detecting material misstatements in the financial statements.

For Internal Controls That Are Relevant to the Audit,the Auditor