When performing an audit of internal control under PCAOB requirements,auditors evaluate control:
$\begin{array} { c c c }
& \text { Design Effectiveness } & \text { Operating Effectivenes:} \\end{array}$
A- $\begin{array} { c c c } \quad\quad\quad\quad\quad\quad\text { Yes } &\quad\quad\quad\quad \quad\quad\quad\text { Yes } \\end{array}$
B- $\begin{array} { c c c }\quad\quad\quad\quad\quad\quad \text { Yes } &\quad\quad\quad\quad\quad\quad\quad \text { No } \\end{array}$
C- $\begin{array} { c c c } \quad\quad\quad\quad\quad\quad\text {No} & \quad\quad\quad\quad\quad\quad\quad\text { Yes } \\end{array}$
D- $\begin{array} { c c c }\quad\quad\quad\quad\quad\quad \text { No } &\quad\quad\quad\quad \quad\quad\quad\text { No }
\end{array}$

A)Option A
B)Option B
C)Option C
D)Option D

Question

When performing an audit of internal control under PCAOB requirements,auditors evaluate control: 
$\begin{array} { c c c } 
& \text { Design Effectiveness } & \text {  Operating Effectivenes:}  \\end{array}$
A- $\begin{array} { c c c }   \quad\quad\quad\quad\quad\quad\text { Yes } &\quad\quad\quad\quad  \quad\quad\quad\text { Yes } \\end{array}$
B-  $\begin{array} { c c c }\quad\quad\quad\quad\quad\quad \text { Yes } &\quad\quad\quad\quad\quad\quad\quad \text { No } \\end{array}$
C-  $\begin{array} { c c c } \quad\quad\quad\quad\quad\quad\text {No} & \quad\quad\quad\quad\quad\quad\quad\text { Yes } \\end{array}$
D-   $\begin{array} { c c c }\quad\quad\quad\quad\quad\quad \text { No } &\quad\quad\quad\quad \quad\quad\quad\text { No }
\end{array}$
 
A)Option A
B)Option B
C)Option C
D)Option D

Quizplus · Accepted Answer

PCAOB requirements mandate that auditors evaluate the design and operating effectiveness of internal control over financial reporting (ICFR). Option A indicates that the auditors evaluate controls to obtain evidence regarding the operating effectiveness and design of ICFR, which is consistent with PCAOB requirements. Option B, evaluating the effectiveness of the financial reporting system, is only a partial evaluation as it does not cover the design of the system. Option C, evaluating the effectiveness of management control, is too broad and vague as it covers all aspects of management control rather than just ICFR. Option D, evaluating the performance of employees, is not relevant to assessing internal control over financial reporting.

When Performing an Audit of Internal Control Under PCAOB Requirements,auditors Design Effectiveness Operating Effectivenes:\begin{array} { c c c } & \text { Design Effectiveness } & \text { Operating Effectivenes:} \\\end{array}​ Design Effectiveness ​ Operating Effectivenes:​

When Performing an Audit of Internal Control Under PCAOB Requirements,auditors $\begin{array} { c c c } & \text { Design Effectiveness } & \text { Operating Effectivenes:} \\\end{array}$