If an auditor believes that the audit client's internal controls are effective, the approach she/he would take in the conduct of the audit is
A) to place emphasis on testing account balances.
B) to place her/his focus on tests of controls and further tests of transactions and balances.
C) a substantive approach.
D) none of the above

Question

Quizplus · Accepted Answer

When an auditor believes that a client's internal controls are effective, they are likely to focus on tests of controls and further tests of transactions and balances. This approach allows the auditor to rely on the controls to prevent or detect material misstatements, thus focusing their efforts on verifying the effectiveness of these controls and the transactions and balances they affect.

If an Auditor Believes That the Audit Client's Internal Controls