In preparing a working paper for tests of controls, _______.
A)the auditor should defer preparation to the internal audit function
B)the auditor would ordinarily set out the purpose of the tests of the financial statement accounts identified
C)the auditor would ordinarily set out the purpose of the tests of the controls identified
D)the auditor should be careful to avoid bringing to management's attention any defective controls

Question

Quizplus · Accepted Answer

The purpose of tests of controls in an audit is to evaluate the effectiveness of an entity's internal control over financial reporting. Therefore, when preparing a working paper for tests of controls, the auditor would set out the purpose of these tests related to the controls identified, to document their design and operation.

In Preparing a Working Paper for Tests of Controls, _______