Which one of the following statements is NOT correct?
A) Tests of transactions are often performed several months prior to the balance sheet date.
B) It is common to use analytical procedures at any time during the audit.
C) Tests of details of balances are normally the last tests performed.
D) When controls are not considered effective, or when control deviations are discovered, substantive tests will be eliminated.

Question

Quizplus · Accepted Answer

When controls are not considered effective, or when control deviations are discovered, auditors typically increase substantive testing rather than eliminate it. This is because ineffective controls mean that the auditor cannot rely on them and must perform more detailed testing to gain assurance about the financial statements.

Which One of the Following Statements Is NOT Correct