Which of the following is an accurate statement relating to the extent of procedures?
A) If an auditor wants a lower assessed control risk than the preliminary assessed control risk, the number of controls tested increases while the extent of the tests for each control decrease.
B) The extent of testing depends on the frequency of the operation of the controls.
C) All controls must be tested only at year-end.
D) The frequency of testing is the same for both manual and computer controls.

Question

Quizplus · Accepted Answer

The extent of testing procedures indeed depends on the frequency of the operation of the controls. More frequently operated controls may require more extensive testing to ensure their effectiveness over the period under audit.

Which of the Following Is an Accurate Statement Relating to the Extent