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NEW QUESTION: 1
During consideration of internal control in a financial statement audit, an auditor is not obligated to:
A. Perform procedures to understand the design of internal control.
B. Understand the internal control environment and the accounting system.
C. Determine whether the control activities relevant to audit planning have been implemented.
D. Search for all significant deficiencies in the operation of internal control.
Choice "A" is correct. During consideration of internal control in a financial statement audit, an auditor is
not obligated to search for all significant deficiencies in the operation of internal control, but should
communicate any such situations noted to management and those charged with governance.
Choice "B" is incorrect. The auditor is required to obtain an understanding of each of the five components
of internal control, including the control environment and the (accounting) information system.
Choices "C" and "D" are incorrect. As part of planning, the auditor is required to obtain an understanding of
the design of relevant controls and to determine whether they have been implemented.