If the test results do not confirm the preliminary evaluation of controls, _______.
A)the auditor will consider whether there is a compensating control that might prevent and correct a misstatement missed by the original control being tested
B)the auditor will consider whether there is a compensating control that might detect and correct a misstatement missed by the original control being tested
C)the auditor should obtain additional written assurances from management
D)the auditor should consider withdrawing from the engagement

Question

Quizplus · Accepted Answer

If the test results do not confirm the preliminary evaluation of controls, the auditor will consider whether there is a compensating control that might detect and correct a misstatement missed by the original control being tested. This is because a compensating control could still provide sufficient coverage to reduce the risk of material misstatement. The auditor should not consider withdrawing from the engagement, as this should only be done in extreme circumstances. Obtaining additional written assurances from management may be helpful, but it is not the best choice in this scenario.

If the Test Results Do Not Confirm the Preliminary Evaluation