For significant risks, including fraud risks, the auditor should obtain an understanding of the internal controls related to the risks.

Question

Quizplus · Accepted Answer

It is essential for the auditor to obtain an understanding of internal controls related to significant risks, including fraud risks, in order to plan and execute an effective audit. This enables the auditor to assess the potential impact of the risks on the financial statements and to design audit procedures accordingly.

For Significant Risks, Including Fraud Risks, the Auditor Should Obtain