An auditor should obtain knowledge of a client's information and communication system in order to understand each of the following, except:

Question

Quizplus · Accepted Answer

Choice "D" is correct. Control activities (not the information and communication system) are the policies and procedures that help ensure that management directives are carried out. Choices "A", "B", and "C" are incorrect. The auditor obtains an understanding of an entity's information and communication system to understand how transactions are initiated, processed, and reported, the financial reporting process, and the means used by an entity to communicate financial reporting roles and responsibilities.

An Auditor Should Obtain Knowledge of a Client's Information and Communication