For efficiency, tests of controls are frequently done at the same time as:
A) analytical procedures.
B) compliance tests.
C) substantive tests of transactions.
D) substantive tests of balances.

Question

Quizplus · Accepted Answer

Tests of controls are designed to test the effectiveness of an entity's internal control system. Substantive tests of transactions are also completed to verify the accuracy and completeness of individual transactions. As both of these tests are concerned with the same area of the financial statements, they can be done simultaneously to improve efficiency.

For Efficiency, Tests of Controls Are Frequently Done at the Same