To rely on the ICFR in the financial statement audit, the auditor must:
A) test the ITCG at both interim and year-end.
B) assess the control risk below maximum.
C) Both a and b.
D) Neither a nor b.

Question

Quizplus · Accepted Answer

To rely on the Internal Control over Financial Reporting (ICFR) in the financial statement audit, the auditor must test the Information Technology General Controls (ITGC) at both interim and year-end, and assess the control risk below maximum. This ensures that the auditor has a strong understanding of the control environment and can rely on the controls in place.

To Rely on the ICFR in the Financial Statement Audit