The auditor selects entity-wide controls for testing, but NOT transaction controls specific to long-lived assets.

Question

Quizplus · Accepted Answer

Entity-wide controls are overarching and affect the entire organization, while transaction controls specific to long-lived assets are necessary to ensure the accuracy and integrity of transactions related to those assets. Both types of controls are important and may be selected for testing depending on the audit objectives.

The Auditor Selects Entity-Wide Controls for Testing, but NOT Transaction