Generally accepted auditing standards permit auditors to place complete reliance on internal control (zero control risk assessment)to justify the exclusion of substantive audit procedures for a balance sheet or income statement account.

Question

Quizplus · Accepted Answer

Generally accepted auditing standards require auditors to perform substantive audit procedures even if internal control is deemed effective. Complete reliance on internal control is not permitted because it is always possible for internal control to fail or for an error to occur.

Generally Accepted Auditing Standards Permit Auditors to Place Complete Reliance