Which of the following is the most important reason for an auditor to gain an understanding of an audit client's system of internal control over financial reporting?
a. Understanding a client's system of internal control can help the auditor asses risk and identify areas where financial statement misstatement might be more likely
b. Understanding a client's system of internal control can help the auditor make valuable recommendations to management at the end of the engagement
c. Understanding a client's system of internal control can help the auditor sell consulting services to the client
d. Understanding a client's system of internal control is not a required part of the audit process
Ans: a. Understanding a client's system of internal control can help the auditor asses risk and identify areas where financial statement misstatement might be more likely
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