What Is The Auditor’s Primary Consideration With Respect To The Com

1.	What Is The Auditor’s Primary Consideration With Respect To The Components Of Internal Control?
Answer» The auditor’s primary consideration is whether a specific control affects the financial statement ASSERTIONS rather than its classification into any PARTICULAR component. Although the five components are applicable to every audit, they should be considered in the context of the following: Entity size Organization and OWNERSHIP characteristics Nature of the entity’s business DIVERSITY and complexity of operations METHODS of transmitting, processing, maintaining, and accessing information Applicable legal and regulatory requirements The auditor’s primary consideration is whether a specific control affects the financial statement assertions rather than its classification into any particular component. Although the five components are applicable to every audit, they should be considered in the context of the following:

What Is The Auditor’s Primary Consideration With Respect To The Components Of Internal Control?

Answer»

The auditor’s primary consideration is whether a specific control affects the financial statement ASSERTIONS rather than its classification into any PARTICULAR component. Although the five components are applicable to every audit,

they should be considered in the context of the following:

Entity size
Organization and OWNERSHIP characteristics
Nature of the entity’s business
DIVERSITY and complexity of operations
METHODS of transmitting, processing, maintaining, and accessing information
Applicable legal and regulatory requirements

The auditor’s primary consideration is whether a specific control affects the financial statement assertions rather than its classification into any particular component. Although the five components are applicable to every audit,

they should be considered in the context of the following:

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