While planning for an accounts payable audit, an internal auditor performs an entity-level controls analysis. Which of the following statements is true regarding the approach used by the auditor?
A.
It enables the auditor to identify the inherent risks to the effective operation of accounts payable process controls.
B.
It enables the auditor to understand the framework of the activities and associated accounts payable subprocesses.
C.
It enables the auditor to understand the accounts payable process and its flow, including key steps and systems.
D.
It enables the auditor to categorize the population of transactions within the accounts payable process.
Performing an entity-level controls analysis involves examining the overarching controls and governance structures that affect multiple processes, including accounts payable. This approach helps the auditor understand the broader framework within which specific subprocesses operate, which is essential for assessing how entity-level controls impact the effectiveness of controls within the accounts payable process.
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emtofid
5 months, 3 weeks ago