After obtaining an initial understanding of a client's IT controls, an auditor may decide not to perform tests of controls related to the control procedures within the IT section of the client's internal control.Which of the following justifications would not be a valid reason for choosing to omit tests of controls?
A)The controls appear adequate.
B)The controls duplicate operative controls existing elsewhere in the system.
C)There appear to be major deficiencies that would preclude using the stated procedure as a basis to reduce the assessed level.
D)The time and dollar costs of testing exceed the time and dollar savings in substantive testing if the tests of controls show the controls to be operative.

Question

Quizplus · Accepted Answer

The auditor deciding not to perform tests of controls because the controls appear adequate is not a valid reason for omitting tests of controls. The appearance of adequacy does not provide assurance that the controls are effective without testing.

After Obtaining an Initial Understanding of a Client's IT Controls