Question

An integrated audit is defined as _______.

A) An audit of a client's financial statements
B) An audit of a client's system of internal control
C) Performing the financial statement audit and the audit of the effectiveness of internal control over financial reporting (ICFR) at the same time
D) Both the external and internal auditors performing the financial statement audit.

Answer 1

An integrated audit performs both financial statement auditing and effectiveness evaluation of internal control over financial reporting at the same time.

Step-by-step explanation:

An integrated audit is defined as (C) Performing the financial statement audit and the audit of the effectiveness of internal control over financial reporting (ICFR) at the same time. This comprehensive approach entails a concurrent evaluation of a client's financial records and internal controls to ensure accuracy and compliance with applicable laws and standards.

The process is designed to assess both the accuracy of the financial statements and the effectiveness of the internal controls in place to safeguard the financial integrity of the organization.