When testing controls, _______.
A)the auditor must be alert for evidence that the control might be effective, even if only once or twice
B)the auditor must be alert for evidence that the control might be ineffective, even if only once or twice
C)the auditor should delegate audit procedures to the internal auditors where possible
D)it is possible for the auditor to rely on the opinion of the prior auditor

Question

Quizplus · Accepted Answer

When testing controls, the auditor must be alert for evidence that the control might be ineffective, even if only once or twice. This is because a single instance of a control failure can have a material impact on the financial statements. Therefore, the auditor must assess the effectiveness of the control over the entire period being audited, rather than relying solely on past experience or assumptions about the control's effectiveness. The auditor should also perform their own testing procedures rather than relying on the opinion of the prior auditor. Delegating audit procedures to internal auditors may be appropriate in some cases, but the auditor should still exercise appropriate oversight and perform their own testing to ensure the reliability of the internal audit function.

When Testing Controls, _______