In Part I, of our three-part series, we took a deep dive into the audit risk model. In Part 2, we took a deep dive into the assessment of control and inherent risks. Now, in Part 3, we take a deep dive into the auditor’s responsibilities and requirements as to the auditee’s system of internal control and controls relevant to the audit. There are three layers of responsibilities set forth in generally accepted auditing standards:
1. Obtain an understanding of