Question

In comparison to financial statement audits, auditors who perform integrated audits typically perform...

a. More detailed examinations of financial records
b. Additional assessments of internal controls
c. Less rigorous testing of financial transactions
d. Unrelated tasks outside the scope of auditing

Answer 1

In integrated audits, auditors conduct more thorough assessments of internal controls in addition to reviewing financial statements to ensure the effectiveness of controls in error and fraud prevention. The correct option is B.

Step-by-step explanation:

In comparison to financial statement audits, auditors who perform integrated audits typically perform additional assessments of internal controls.

This approach not only focuses on the accuracy of the financial statements but also ensures that the company has effective internal controls in place to prevent or detect errors and fraud.

During an integrated audit, auditors examine both the control environment and the control activities, including a review of entity-level controls, risk assessment procedures, information and communication systems, and monitoring controls.