Which of the following factors is most likely to affect the extent of the documentation of the auditor's
understanding of a client's system of internal controls?
a. The industry and the business and regulatory environments in which the client operates.
b. The degree to which information technology is used in the accounting function .
c. The relationship between management, the board of directors, and external stakeholders.
d. The degree to which the auditor intends to use internal audit personnel to perform substantive tests.
Choice "b" is correct. The more complex the IT system, the more extensive the documentation (such as
flowcharts , narratives, questionnaires, decision tables, etc.). The less complex the IT system, more limited
documentation , such as a memorandum, may be sufficient.