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:

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A child with a body mass index (BMI) at or above the 95th percentile for children of the same age and sex, indicating excessive body fat that poses health risks.

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A feeling of dizziness or faintness, often due to a decrease in blood supply to the brain.

Transfer Device

A tool or equipment used to help move patients from one location to another safely.

Seated Position

The posture of being in a chair or similar setting where the buttocks and thighs support the weight of the body.