The auditor shall obtain an understanding of the major activities that the entity uses to monitor internal control over financial reporting, but excluding those related to those control activities relevant to the audit.Select one:TrueFalse

An audit requires an understanding of all the control activities related to each significant class of transactions, account balance, and disclosure in the financial statements or to every assertion relevant to them.Select one:TrueFalse

When the auditor has determined that a significant risk exists, the auditor shall obtain an understanding of the entity's controls, but not including control activities, relevant to that risk.Select one:TrueFalse

Explain why an auditor needs to obtain an understanding of the components of internal control relevant to the preparation of the financial statements.

In addition to the audit of financial statements, it is also the responsibility of the auditor to establish and maintain internal controls that are effective in preventing and detecting material misstatements. Group of answer choices True False

The financial statements subject to audit are those of the entity, prepared and presented by external auditors of the entity with oversight from the managementSelect one:TrueFalse