An audit client failed to maintain copies of its procedures manuals and organizational flowcharts. what should the auditor do in an audit of financial statements? a. document the auditor's understanding of internal controls. b. restrict the auditor's responsibility to assess the effectiveness of controls in the audit engagement letter. c. assess control risk at the maximum level. d. issue a qualified opinion on the basis of a scope limitation.
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This lack of documentation can impact the auditor's ability to understand and evaluate the client's internal controls. Let's analyze the options step by step: a. **Document the auditor's understanding of internal controls.** - This is a standard procedure in Show more…
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