If an auditor decides that a client has internal controls that can reduce the likelihood of a material misstatement for an identified risk, the auditor will:
A) test those controls
B) qualify the audit report
C) adopt a predominantly substantive approach
D) not test those controls

Question

Quizplus · Accepted Answer

If the auditor determines that the client has effective internal controls, they will perform testing on those controls as part of their assessment of the overall control environment. This helps them to reduce the level of substantive testing needed and is consistent with the principles of a top-down approach to auditing.

If an Auditor Decides That a Client Has Internal Controls