Question

For publicly-held companies, which of the following is integrated into the audit of financial statements?

A. Budgetary information audit.
B. The audit of internal controls.
C. Audit of management forecasts.
D. Audit of interim financial statements.

Answer 1

For publicly-held companies, the audit of internal controls is integrated into the audit of financial statements. Additionally, auditors may also perform the audit of interim financial statements. Budgetary information audit and audit of management forecasts are not integrated into the audit of financial statements.

Step-by-step explanation:

For publicly-held companies, the audit of internal controls is integrated into the audit of financial statements. This is because internal controls play a crucial role in ensuring the accuracy and reliability of financial information. By assessing the effectiveness of internal controls, auditors can gain assurance on the integrity of the company's financial statements.

In addition to the audit of internal controls, auditors may also perform the audit of interim financial statements to assess the company's financial performance and position during a specific period of time, typically the middle of the fiscal year. This allows stakeholders to have up-to-date information.

Budgetary information audit and audit of management forecasts are not directly integrated into the audit of financial statements. These audits assess specific aspects related to financial planning and forecasting, but they are separate from the audit of financial statements.