The effectiveness of controls is not generally tested by: A)Inspection of documents and reports. B)Performance of analytical procedures. C)Observation of the application of accounting policies and procedures. D)Inquiries of appropriate client personnel.

Question

Quizplus · Accepted Answer

While inspection of documents and reports, observation of the application of accounting policies and procedures, and inquiries of appropriate client personnel are common methods of testing control effectiveness, performing analytical procedures is not typically used for this purpose. Analytical procedures are more commonly used in substantive testing to detect potential misstatements in financial information.

The Effectiveness of Controls Is not generally Tested By