Where the auditor has decided to rely upon internal controls,he or she will then
A)eliminate the need to gather evidence in that area.
B)test the effectiveness of the controls in that area.
C)proceed to expand the sample sizes in that area.
D)negotiate with management to determine which controls will be tested in that area.

Question

Quizplus · Accepted Answer

If the auditor decides to rely upon internal controls, they will need to test the effectiveness of those controls to ensure that they are working as intended. This involves obtaining evidence to support the reliance on those internal controls. Therefore, option B is the best choice. The auditor cannot eliminate the need to gather evidence or proceed to expand the sample sizes based on reliance alone. Negotiating with management to determine which controls to test is not necessary.

Where the Auditor Has Decided to Rely Upon Internal Controls,he