Hello - I need assistant with this problem please: When completing a financial s

Question

Hello - I need assistant with this problem please:

When completing a financial statement audit, the auditors are concerned with which category of internal control?

Controls over the reliability of financial reporting

Controls related to the efficiency and effectiveness of operations

Controls related to the company's compliance with applicable laws and regulations

All of the above

Controls over the reliability of financial reporting

Controls related to the efficiency and effectiveness of operations

Controls related to the company's compliance with applicable laws and regulations

All of the above

Explanation / Answer

Correct Answer – All of the Above.

Explanation

A financial Statement audit aims at forming an opinion that financial statements are prepared correctly and seems true and correct.

In a Financial audit auditor needs to be aware of the internal control placed by the entity and effectiveness of those control. The reliability of the financial statements depends on the effectiveness of management in preparing those statements and the Compliances with applicable laws and Regulations.

The Auditor gives an Unqualified Opinion only if the company’s financial statements are reliable and company has followed necessary compliances relating to applicable laws and regulations.

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