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. Issue a qualified opinion on the basis of a scope limitation.
b. Document the auditor's understanding of internal control.
c. Assess control risk at the maximum level.
d. Restrict the auditor's responsibility to assess the effectiveness of controls in the audit engagement letter.
Answer: B
CPA Exam
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