For what reasons do auditors obtain an understanding of a client’s internal control?
Answer to relevant QuestionsWhat is the basic relationship between the effectiveness of the client’s internal control and the necessary effectiveness of substantive procedures?What benefits are obtained by having an engagement letter? What is a termination letter?How does an audit team use materiality on an audit engagement?Define audit trail. How could a computerized system’s transaction audit trail in an advanced system differ from one in a simple system or a manual system?Generally accepted auditing standards require that auditors always prepare and use a. A written planning memorandum explaining the auditors’ understanding of the client’s business. b. A written client consent to discuss ...
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