If the client relies on computer controls and the auditor plans to assess control risk as low for revenue cycle assertions, the auditor will usually ________.
A)test the effectiveness of general controls
B)perform substantive testing, to increase the confidence level
C)test the whole population as opposed to a sample
D)drastically increase the sample size

Question

Quizplus · Accepted Answer

Testing the effectiveness of general controls is crucial when an auditor plans to assess control risk as low for revenue cycle assertions, especially if the client relies on computer controls. This is because general controls impact the overall environment and can affect multiple applications, ensuring the reliability of the system that processes transactions.

If the Client Relies on Computer Controls and the Auditor