The auditor shall obtain an understanding of internal

The auditor shall obtain an understanding of internal control relevant to the audit. Although most controls relevant to the audit are likely to relate to financial reporting, not all controls that relate to financial reporting are relevant to the audit. It is a matter of the auditor’s professional judgment whether a control, individually or in combination with others, is relevant to the audit” (Ref: Para. A50–A73, ISA315) Required: (a) State ANY TWO (2) methods auditor gains understanding on the internal control system. (2 marks) (b) Describe the importance for external auditors to understand their client’s internal control over financial reporting. (6 marks)