After considering a client's internal controls, an auditor has concluded that it is well designed and is functioning as intended. Under these circumstances, the auditor would most likely
A) perform tests of controls to the extent outlined in the audit program.
B) determine the control procedures that should prevent or detect errors and irregularities.
C) use a combined audit approach that includes tests of controls and substantive tests.
D) determine whether transactions are recorded to permit preparation of financial statements in accordance with generally accepted accounting principles.

Question

Quizplus · Accepted Answer

When internal controls are well designed and functioning, auditors often use a combined audit approach, which includes both tests of controls and substantive tests, to efficiently gather sufficient audit evidence.

After Considering a Client's Internal Controls, an Auditor Has Concluded