When assessing whether the financial statements are auditable, the auditor must consider
◦ that the integrity of management and the adequacy of accounting records are the two primary factors determining auditability.
◦ that the integrity of management and the adequacy of risk management are the two primary factors determining auditability.
◦ that if all of the transaction information is available only in electronic form without a visible audit trail, the company cannot be audited.
◦ the control risk before determining if the entity is auditable.