If internal controls are tested and are considered effective, the auditor generally will increase both substantive tests of transactions and tests of details of balances.

Name: If internal controls are tested and are considered effective, the auditor generally will increase both substantive tests of transactions and tests of details of balances.
Brand: Quizplus
Rating: 4.8 (37 reviews)

Question

Quizplus · Accepted Answer

If internal controls are tested and found to be effective, the auditor may rely on them to reduce substantive testing. Therefore, the statement is false.

If Internal Controls Are Tested and Are Considered Effective, the Auditor