Adherence to GAAS requires, among other things, a proper study and evaluation of the existing internal control. The most common approaches to reviewing the system of internal control include the use of a questionnaire, preparation of a written description, preparation of a flowchart, and combinations of these methods.

Required:

a. What is a CPA's objective in reviewing internal control for an opinion audit?

b. Discuss the advantages to a CPA of reviewing internal control by using 1. An internal control questionnaire.

2. The written description approach.

3. A flowchart.

c. If he is satisfied after completing his description of internal control for an opinion audit that no material weaknesses in the client's internal control system exist, is it necessary to test transactions? Explain.