Tests of controls are directed toward the control's:
A) efficiency and effectiveness.
B) effectiveness.
C) cost benefit ratio.
D) efficiency.

Question

Quizplus · Accepted Answer

Tests of controls are mainly focused on testing the effectiveness of the control, i.e., whether the control can detect or prevent any material misstatements in the financial statements. The efficiency and cost-benefit of the control may also be considered, but they are not the primary focus of tests of controls.

Tests of Controls Are Directed Toward the Control's