The primary purpose for obtaining an understanding of the companys internal controls in a financial statement audit

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The primary purpose for obtaining an understanding of the company’s internal controls in a financial statement audit is to

a. Determine the nature, timing, and extent of auditing procedures to be performed.

b. Make consulting suggestions to management.

c. Obtain direct, sufficient, and appropriate evidential matter to afford a reasonable basis for an opinion on the financial statements.

d. Determine whether the company has changed any accounting principles.

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Auditing An International Approach

ISBN: 978-1259087462

7th edition

Authors: Wally J. Smieliauskas, Kathryn Bewley

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