Final answer:
Auditors assess their clients' internal control to evaluate the risk of material misstatement and determine the nature, timing, and extent of audit procedures.
Step-by-step explanation:
During financial statement audits, the auditors' consideration of their clients' internal control is integral to both assess the risk of material misstatement and to determine the nature, timing, and extent of audit procedures.
Auditors evaluate internal controls to identify areas where material misstatements are likely to occur, guiding them to focus their efforts on high-risk areas. A robust internal control system can reduce the risk of errors or fraud, affecting the audit's scope and the resources allocated.
Understanding these controls helps auditors decide on the audit plan, ensuring that their review is efficient and covers all necessary aspects dictated by the identified risks.