A.

It is mandatory for auditors to obtain an understanding of a client's internal controls for every

audit engagement. Therefore, even if an auditor decides not to rely on internal controls in the

audit, the auditor is required to obtain an understanding of internal control systems.

Required:

A.1. In relation to the "three phases of audit" in which phase does an auditor commonly obtain her/his

understanding of a client's internal control systems?

A.2. What is the impact of understanding of a client's internal control systems on an audit strategy

overall?

A.3. Discuss 4 (five) common audit procedures that an auditor can apply to understand of a client's

internal control systems.