If evidence was obtained in the prior year's audit that indicates a key control was operating effectively:
A) the extent of tests of that control may be reduced this year if the auditor determines that it is still in place.
B) the tests of that control will be reduced this year.
C) it will be unnecessary to test that control this year.
D) the auditor would not test this area again this year.

Question

Quizplus · Accepted Answer

While evidence obtained in the prior year's audit that indicates a key control was operating effectively can be taken into consideration in the current audit, the extent of the tests of that control cannot be reduced to zero as circumstances may have changed, and the control may no longer be in place. The auditor must exercise professional judgment to determine whether the control is still operating effectively before deciding on the extent of tests to perform in the current year. Therefore, the extent of tests of that control may be reduced this year if the auditor determines that it is still in place.

If Evidence Was Obtained in the Prior Year's Audit That