When gaining an understanding of the client's monitoring processat 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 factors that should be considered when gaining an understanding of the client's monitoring process at the entity level. Therefore, option C is the best choice. Option A alone is incorrect because it only considers the external auditors' evaluations or observations, while option B alone is also incorrect because it only considers management's approach to correcting significant deficiencies. Option D is incorrect because at least some factors should be considered when gaining an understanding of the client's monitoring process at the entity level.

When Gaining an Understanding of the Client's Monitoring Processat the Entity