4915-6-12MCQ AID: 1825 | 14/06/2013 Multiple Choice Questions Answer: (d) Affect the financial statement asseti!ns" Justification: #he second standard of field work e$%ies that an a%&it! m%st !'tain a s%fficient %n&estan&in( !f the entit) an& its en*i!nment+ including its internal control, to assess the risk of material misstatement of the financial statement ,hethe &%e t! e! ! fa%&" #heef!e+ the ima) c!nsi&eati!n !f the a%&it! e(a&in( th intenal c!nt!l is the ,a) it affects the financial statement asseti!ns"
Answer: (d) Affect the financial statement assertions.
Justification: The second standard of field work requires that
an auditor must obtain a sufficient understanding of the entity and
its environment, including its internal control, to assess the risk
of material misstatement of the financial statement whether due to
error or fraud. Therefore, the primary consideration of the auditor
regarding the entitys internal control is the way it affects the
financial statement assertions.
