Final answer:
The factors affecting the extent of the auditor's consideration of the client's internal controls include risk assessment, size and complexity of operations, effectiveness of internal control system, and industry-specific regulations.
Step-by-step explanation:
The extent of the auditor's consideration of the client's internal controls is influenced by several factors. These factors include the overall risk assessment of the audit, the size and complexity of the client's operations, the effectiveness of the client's internal control system, and the nature of the client's industry.
For example, a high-risk client with complex operations may require a more in-depth assessment of internal controls compared to a low-risk client with simple operations. Additionally, if a client operates in a highly regulated industry such as banking or healthcare, the auditor may need to place greater emphasis on assessing internal controls to ensure compliance with industry-specific regulations.
Furthermore, the auditor's consideration of internal controls also depends on the results of preliminary assessments and tests of control performed during the planning and risk assessment phase of the audit. If the auditor identifies weaknesses or deficiencies in the client's internal control system, it may warrant additional testing and evaluation.