Tests of controls are most likely to be performed when:
A)Controls seem weak and must be properly documented.
B)Inadequate substantive procedures exist to restrict audit risk to an acceptable level.
C)The auditor wishes to assess control risk at the maximum.
D)The client's control environment appears weak.

Question

Quizplus · Accepted Answer

Tests of controls are performed to obtain audit evidence about the effectiveness of the client's internal control system in order to support a reduction in substantive procedures. If substantive procedures are inadequate to restrict audit risk to an acceptable level, tests of controls may be performed to compensate for the deficiency of substantive procedures.

Tests of Controls Are Most Likely to Be Performed When