The primary purpose of the auditors' study of internal control for a non-issuer is:
A)to provide constructive suggestions to the client for improving its internal control.
B)to report on internal control as required by Auditing Standard No. 5.
C)to identify and detect fraud and irregularities perpetrated by client personnel.
D)to determine the nature, timing, and extent of further audit procedures.

Question

Quizplus · Accepted Answer

The primary purpose of auditors studying internal control for a non-issuer is to determine the nature, timing, and extent of further audit procedures. This helps in planning the audit by assessing the risk of material misstatement.

The Primary Purpose of the Auditors' Study of Internal Control