When gaining an understanding of the client's monitoring processes at the entity level, factors ordinarily considered include
A) evaluations or observations made by the external auditors.
B) management's approach to correcting known significant deficiencies on a timely basis.
C) both a and b
D) none of the above

Question

Quizplus · Accepted Answer

Evaluations or observations made by the external auditors and management's approach to correcting known significant deficiencies on a timely basis are both important factors to consider when gaining an understanding of the client's monitoring processes at the entity level. Therefore, both options A and B are correct.

When Gaining an Understanding of the Client's Monitoring Processes at the Entity