An auditor concludes that the internal controls are not operating effectively when in fact they are. This most likely would result in:
A) a qualified opinion on the ICFR.
B) additional substantive testing.
C) additional scope requirements.
D) All of the above.

Question

Quizplus · Accepted Answer

When an auditor incorrectly concludes that internal controls are not operating effectively, they are likely to perform additional substantive testing to compensate for the perceived lack of reliability in the controls. This is done to ensure the financial statements are free of material misstatement.

An Auditor Concludes That the Internal Controls Are Not Operating