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Auditors typically rely on internal controls of their private company clients A. only as needed to...

Auditors typically rely on internal controls of their private company clients

A. only as needed to complete the audit and satisfy Sarbanesminus Oxley requirements.

B. only if the controls are sufficient to increase control risk to an acceptable level.

C. only if the client asks an auditor to test controls.

D. only if the controls are determined to be effective.

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Answer #1

Answer in point B. Auditors typically rely on internal controls of their private company clients only if the controls are sufficient to increase control risk to an acceptable level.

As because if there the internal controls are not sufficient then there will be more control risk and which will not be accepted by the Auditor. So auditors rely on internal control only when the internal control of the organisation is sufficient enough that the control is risk reaches the acceptable level of Auditor.

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