Week 5 - The Auditor and Internal Control

Question 1

ISA315 - The auditor is required to obtain an understanding of the clients controls as to 1)

Answer 1

• plan the audit

Question 2

ISA315 - The auditor is required to obtain an understanding of the clients controls as to 2)

Answer 2

• develop an effective audit approach - dedicate more time to risky areas

Question 3

ISA315 - The auditor is required to obtain an understanding of the clients controls as to 3)

Answer 3

• determine if they can prevent misstatements and errors

Question 4

Requires professional judgement to assess any areas of importance…

Answer 4

Controls relevant to the financial statements vs those that aren’t