When an auditor plans to rely on controls that have changed since they were last tested, which of the following courses of action would be most appropriate?
A)Test the operating effectiveness of such controls in the current audit.
B)Document that reliance and proceed with the original audit strategy.
C)Inquire of management as to the effectiveness of the controls.
D)Report the reliance in the report on internal controls.

Question

Quizplus · Accepted Answer

It would be most appropriate for the auditor to test the operating effectiveness of the controls that have changed since they were last tested in the current audit to ensure that they are still effective. Simply documenting reliance on controls without testing their operating effectiveness could lead to reliance on ineffective controls which could lead to material misstatements not being detected. Inquiring with management or reporting the reliance in the report on internal controls alone may not be sufficient to ensure the effectiveness of the controls.

When an Auditor Plans to Rely on Controls That Have