Auditors perform tests of control activities to determine how the company's controls actually functioned during the period under audit.

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Auditors perform tests of control activities as part of their audit procedures to evaluate the effectiveness of the company's internal control system. These tests help auditors to assess the risk of material misstatements in the financial statements and to obtain sufficient and appropriate evidence to support their opinion. The tests may include inquiries, observations, inspections, and re-performance of the control activities. The results of these tests provide a basis for auditors to determine whether they can rely on the company's internal control system and to plan the scope and nature of the substantive testing.

Auditors Perform Tests of Control Activities to Determine How the Company's