The Auditor's Primary Objective to Obtain an Understanding of Internal

question 15

Multiple Choice

The auditor's primary objective to obtain an understanding of internal control is that it must provide:

• A) reasonable protection against client fraud and defalcations by client employees.
• B) an understanding that is sufficient for the auditor to plan the audit adequately.
• C) a basis for constructive suggestions to the client for improving the accounting system.
• D) a method for safeguarding assets, checking the accuracy and reliability of accounting data, promoting operational efficiency, and encouraging adherence to prescribed managerial policies.