Week 5 - The Auditor and Internal Control

Question 1

ISA315 - The auditor is required to obtain an understanding of the clients internal controls so as to 1)

Answer 1

Plan the audit

Question 2

ISA315 - The auditor is required to obtain an understanding of the clients internal controls so as to 2)

Answer 2

Develop an effective audit approach

Question 3

ISA315 - The auditor is required to obtain an understanding of the clients internal controls so as to 3)

Answer 3

Determine if they can prevent mis-statements and detect errors

Question 4

What does this require?

Answer 4

Professional judgement to assess areas of importance… controls relevant to the financial statements vs those that aren’t