Test of controls must be performed:
A)to ensure that controls that are to be relied upon are operating effectively throughout the entire year.
B)when inherent risk is high.
C)in areas of business risk.
D)when control risk is high.

Question

Quizplus · Accepted Answer

Testing of controls is necessary to ensure that the controls that are to be relied upon are operating effectively and consistently throughout the entire year. This helps in reducing the control risk and achieving the audit objective. Therefore, option A is the correct answer. Options B, C, and D are not necessarily relevant factors for determining the need for testing of controls.

Test of Controls Must Be Performed