Which of the following is not a reason why an auditor obtains an understanding of internal controls?
a. Understanding the entity's internal control is a requirement of GAAS.
b. The auditor must use the information to assess the risk of material misstatements arising from the lack of internal control.
c. It is the primary basis for the audit report.
d. It assists the auditor in designing the nature, timing and extent of further audit procedures.
c
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Indicate whether the statement is true or false
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(a) True (b) False
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