Among methods used by auditors in gathering evidence, what are tests of control?
A)Methods used to determine the operating effectiveness of the client's controls in preventing, or detecting and correcting, material misstatements at the assertion level.
B)Methods designed to detect material misstatements at the assertion level.
C)Methods used to gain an understanding of a client and its industry for the purpose of identifying risk of material misstatement.
D)Methods used in the evaluation of financial information by studying plausible relationships among both financial and non-financial data.

Question

Quizplus · Accepted Answer

Tests of control are methods used by auditors to determine the operating effectiveness of the client's controls in preventing, detecting and correcting material misstatements at the assertion level. This involves testing the design and implementation of internal controls to ensure they are operating as intended and preventing errors or fraud.

Among Methods Used by Auditors in Gathering Evidence, What Are