For integrated audits, the auditor will test the operating effectiveness of important controls as of the client's year end.

Question

Quizplus · Accepted Answer

Integrated audits involve testing internal controls and financial statements at the same time. In such an audit, the auditor assesses the operating effectiveness of important controls as of the client's year-end. This ensures that the controls were in place and effective in preventing or detecting material misstatements in the financial statements. Therefore, the statement is true.

For Integrated Audits, the Auditor Will Test the Operating Effectiveness