Based on a study and evaluation completed at an interim date, the auditor concludes that no significant internal accounting control weaknesses exist.The records and procedures would most likely be tested again at year-end if:
A)the internal accounting control system provides a basis for reliance in reducing the extent of substantive testing.
B)tests of controls were not performed by the internal auditor during the remaining period.
C)enquiries and observations lead the auditor to believe that conditions have changed.
D)the auditor used non-statistical sampling during interim compliance testing.

Question

Quizplus · Accepted Answer

The auditor would test the records and procedures again at year-end if enquiries and observations lead the auditor to believe that conditions have changed. This would suggest that there could be new internal control weaknesses or that existing weaknesses have become more significant, requiring further testing. The other options (A, B, and D) do not necessarily require additional testing at year-end, as they do not indicate a change in the conditions or risks related to the internal accounting control system.

Based on a Study and Evaluation Completed at an Interim