An auditor is required to obtain a sufficient understanding of internal control to plan the audit. This includes obtaining an understanding of the control environment, the accounting system, and the control policies and procedures that have been implemented. Answer the following questions:

A. What is the primary reason for the auditor to conduct an evaluation of internal control?

B. Suppose in attempting to meet these requirements the auditor has decided to stop evaluation work. Give two reasons why this might be the case and justify them from the auditors perspective.

C. Suppose that after meeting these requirements the auditor has assessed the control risk below maximum. What audit work is required?