At interim dates, an auditor evaluates a client's internal accounting control procedures and finds them to be effective. The auditor then performs a substantial part of the audit engagement on a continuous basis throughout the year. At a minimum, the auditor's year- end audit procedures must include:
A) comparison of the responses to the auditor's internal control questionnaire with a detailed flowchart at year- end.
B) tests of compliance with internal control in the same manner as those tests made at the interim dates.
C) determination that the client's internal accounting control procedures are still effective at year end.
D) confirmation of year- end accounts that were examined at interim dates.

Question

Quizplus · Accepted Answer

The auditor must ensure that the internal controls are still effective at year-end to rely on them for the audit opinion.

At Interim Dates, an Auditor Evaluates a Client's Internal Accounting