Final answer:
Assessing planned control risk for sales varies per company as internal controls differ, and while flowcharts are useful, they are not required. Audit objectives for sales are generally consistent, but achieving them is subject to company-specific controls, and the assessment is based on evidence, not just subjective judgement.Thus the correct option is D.
Step-by-step explanation:
When assessing planned control risk for sales, it is important to recognize that assessing control risk is not a standardized process and will vary for each company. The reason is that a company's internal controls and the efficiency of those controls can differ significantly due to factors like company size, complexity, industry, and specific business processes. While the audit objectives for sales are generally consistent—to ensure that sales are recorded accurately and that transactions are authorized and complete—the implementation of key controls to achieve these objectives will differ. Therefore, the statement that the key internal controls and deficiencies for sales will be the same for every company is incorrect. A flowchart can be a helpful tool for visualizing controls and identifying potential risks and deficiencies, but it is not a requirement for assessing control risk. Instead, auditors use various methods such as inquiry, observation, inspection, and walk-throughs. Finally, while there is a level of professional judgement involved in assessing control risk, it is not solely a subjective decision; it should be based on evidence and a thorough understanding of the client's internal control systems. As a result, assessing control risk for sales is indeed a significant part of an audit, but one that requires careful consideration of the specific context of each company.