Why is being involved in designing internal controls considered a risk to auditor independence?
Answer to relevant QuestionsHow do external auditors help managers meet their responsibilities for internal control? What is a non-key control? Give a specific example. Why is it not necessary to test control weaknesses? What action does the auditor need to take when control evaluation work indicates a control weakness? What is the auditor’s responsibility for detecting and communicating misstatements? If internal controls are weak, in what situations could an audit still be done, and in what situations would it not be possible to do an audit?
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