Samples to test internal control procedures are intended to provide a basis for an auditor to conclude whether
A) the control procedures are operating effectively.
B) the financial statements are materially misstated.
C) the risk of incorrect acceptance is too high.
D) overall materiality for planning purposes is at a sufficiently low level.

Question

Quizplus · Accepted Answer

Samples are taken to determine whether the control procedures are operating effectively. If they are not, there is an increased risk of material misstatement, which would lead to concern regarding the accuracy of the financial statements. However, the purpose of testing internal control procedures is not to determine whether the financial statements are materially misstated, nor to assess overall materiality for planning purposes.

Samples to Test Internal Control Procedures Are Intended to Provide