It is acceptable for auditors to reduce test of balances and transactions if the ITGC are effective.

Question

Quizplus · Accepted Answer

Effective ITGCs can provide assurance on the reliability and integrity of financial data processed through IT systems. Therefore, auditors can rely on ITGCs and reduce their testing of balances and transactions. However, auditors should still perform some substantive procedures to obtain sufficient audit evidence.

It Is Acceptable for Auditors to Reduce Test of Balances