Which of the following controls would be of concern to management but not to the auditor?
A) controls over the collection of accounts receivable amounts
B) controls over the entry of payroll wage rates into the computer systems
C) controls over the distribution of promotional information to potential clients
D) controls over the cost of inventory items as recorded in the perpetual inventory system

Question

Quizplus · Accepted Answer

Controls over the distribution of promotional information to potential clients are generally outside the scope of an audit, as they do not relate to the reliability of the financial statements. The other controls listed (accounts receivable, payroll wage rates, and inventory cost) all relate to financial statement assertions and are therefore within the scope of an audit.

Which of the Following Controls Would Be of Concern to Management