During engagement planning, which party provides the most accurate and up-to-date description of how organizational processes and key controls operate?
A.
The management responsible for the activity under review
B.
The individuals who perform the daily tasks and functions of the activity under review
C.
The external auditors since they understand the key controls behind the financial statements
D.
The board of directors since they provide overall oversight for the organization
During planning, auditors gather information about processes and controls. While management (A) provides oversight and external auditors (C) focus on financial reporting controls, employees who perform the daily tasks (B) have the most accurate, detailed, and current knowledge of how processes and controls actually operate. The board (D) provides governance, not operational detail.
Contribute your Thoughts:
Chosen Answer:
This is a voting comment (?). You can switch to a simple comment. It is better to Upvote an existing comment if you don't have anything to add.
Submit