Which of the following is the first step in the process where auditors and clients work together to evaluate the clients' system of internal control?
Which of the following is the first step in the process where auditors and clients work together to evaluate the clients' system of internal control?
When auditors and clients work together to evaluate the clients' system of internal control, the first step is to identify objectives. This involves understanding what the organization aims to achieve through its internal control system, which provides a basis for assessing risks, identifying and assessing controls, and developing questionnaires.
I think A. Assessing risks comes first. Why D?
IA should understand what the client wants to achieve before they can identify what is the potential risk of achieving those objectives.
The objectives are already in place and need to be identified. It is not about the objectives that are formulated for an engagement during the planning phase.
'auditors and clients work together' - I assume this as an consulting. so the first thing in consulting is to identify objectives.