An Auditor Is Required to Obtain a Sufficient Understanding of Internal

question 33

Essay

An auditor is required to obtain a sufficient understanding of internal control to plan the audit. This requirement encompasses obtaining an understanding of the control environment, the accounting system, and the control policies and procedures.
Required:
A) What are some of the reasons for obtaining an understanding of an audit client's internal control?
B) What audit work is required for an auditor to be able to assess control risk below maximum?
C) Should an auditor always try to obtain enough evidence to be able to assess control risk below maximum? Explain.

• A) What are some of the reasons for obtaining an understanding of an audit client's internal control?
• B) What audit work is required for an auditor to be able to assess control risk below maximum?
• C) Should an auditor always try to obtain enough evidence to be able to assess control risk below maximum? Explain.

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Definitions:

Leadership Traits

Specific characteristics and qualities that are commonly found in effective leaders, such as integrity, decisiveness, and empathy.

Assessment Instrument

Tools or devices used to evaluate or measure skills, abilities, or knowledge in various domains.

Leadership Ability

The skill set required to guide, inspire, and influence people towards achieving common goals.

Shackleton's Leadership

Refers to the exemplary leadership qualities demonstrated by Ernest Shackleton, particularly during his Antarctic expeditions, emphasizing resilience, team cohesion, and adaptability.