When an auditor performs a test of controls,the evidence he obtains is
A)an observation of segregation of duties.
B)a verification of the transaction.
C)a confirmation of the account balance.
D)only about the control.
E)evidence about whether the class of transactions is materially misstated.

Question

Quizplus · Accepted Answer

Tests of controls are specifically designed to evaluate the operating effectiveness of a control in preventing, or detecting and correcting, material misstatements at the assertion level. They do not directly concern themselves with the verification of transaction details, confirmation of account balances, or the observation of segregation of duties, although such observations might be part of understanding the control environment.

When an Auditor Performs a Test of Controls,the Evidence He