After considering the client's internal control the auditors have concluded that it is well designed and is functioning as anticipated.Under these circumstances the auditors would most likely:
A)Cease to perform further substantive procedures.
B)Reduce substantive procedures in areas where the internal control was found to be effective.
C)Increase the extent of anticipated analytical procedures.
D)Perform all tests of controls to the extent outlined in the preplanned audit program.

Question

Quizplus · Accepted Answer

If the auditors have concluded that the client's internal control is well designed and functioning as anticipated, they may reduce the extent of substantive procedures in areas where the internal control was found to be effective. This means that the auditors may rely more on the internal controls and thus, perform less substantive procedures. However, they should still perform sufficient substantive procedures to obtain reasonable assurance that the financial statements are free from material misstatement.

After Considering the Client's Internal Control the Auditors Have Concluded