In addition to gaining an understanding of the internal controls of a private company, an external auditor, at minimum, would be expected to:

Multiple Choice

Evaluate the internal auditors' work as an important part of the accounting system element of the internal controls.

Document their understanding of the internal control system.

Study organization charts to obtain an understanding of the informal lines of communication.

Observe client employees to determine the extent of their compliance with quality control standards.

The primary responsibility for establishing and maintaining internal controls rests with:

Multiple Choice

Management.

The internal auditors.

The Public Company Accounting Oversight Board.

The external auditors.