During a discussion, a new auditor stated that an assessment of the organization's control environment is not very meaningful because it does not directly affect the processing of individual transactions, and it is the transactions that make up the account balance. As long as the auditor can test the details making up the account balances, the assessment of the control environment is unnecessary.

Required

a. Do you agree or disagree with the new auditor's statement? Justify your answer.

b. Identify six questions that should be included in a questionnaire designed to assess the control environment as it would affect the sales and receivable cycle.