Kelly Lee, a junior audit staff, is assisting you being her audit manager in planning for the audit engagement. In a conversation between Kelly and you, she commented on the following, "In order to fully understand the design and implementation of controls, we have to use all eight types of evidence. To document the understanding of the design of internal control, I suggest using the internal control questionnaire only, as this method has no disadvantages and it is a quick way to complete the procedures which involves only a 'yes' or 'no' to responses."

Comment on Kelly's statements.

Kelly Lee's statement- "In order to fully understand design and implementation of controls, we have to use all eight types evidence."

The above statement is (correct/incorrect) .Her statement relates to the types of evidence used in order to understand design and implementation of controls. Generally, four types of evidence are used: ____ It is (necessary/not required) to use all eight types of evidence for obtaining an understanding of internal controls.

Kelly Lee's Statement- "To document the understanding of the design of internal control, I suggest using the internal control questionnaire only, as this method has no disadvantages and it is a quick way to complete the procedures which involves only a 'yes' or 'no' to responses."

The above statement is (correct/incorrect) An internal control questionnaire asks a series of questions about controls in each audit area as a means of (identifying accounting personnel deficiencies/ identifying external control deficiencies/ identifying internal control deficiencies) It is true that auditors cover each audit area reasonably quickly by using such a questionnaire. However, this questionnaire is (not able to provide /able to provide) an overview of the system, and it is (easy to apply such a questionnaire for some audits especially smaller ones/ easy to apply such a questionnaire for any type of audits/ difficult to apply such a questionnaire for some audits especially smaller ones/ difficult to apply such a questionnaire for any type of audits.) Based on the above, it is quite often smart for auditors to use an ( external control questionnaire and flowcharts /internal control questionnaire and flowcharts /internal control questionnaire and recalculations / internal control questionnaure and decision tree) together for understanding the client's internal control designing and identifying internal controls and deficiencies. (Flowcharts /Decision tree /Questionnaires/ Recalculations) provide an overview of the system, while ( flowcharts/ decision tree/ questionnaires /recalculations) offer useful checklists to remind the auditor of many different types of internal controls that should exist.