At the end of internal control testing,the auditor may conclude that
A)internal controls are effective in preventing or detecting misstatements for the assertion tested for the significant accounts in the business process at the assessed level of control risk specified by the auditor
B)internal controls are not effective
C)internal controls are effective
D)internal controls are effective in preventing or detecting misstatements for the assertion tested
E)internal controls are effective in preventing or detecting misstatements for the assertion tested for the significant accounts in the business process
F)both A and B
G)both C and D

Question

Quizplus · Accepted Answer

At the end of internal control testing, the auditor may conclude either that internal controls are effective in preventing or detecting misstatements for the assertion tested for the significant accounts in the business process at the assessed level of control risk specified by the auditor (A) or that internal controls are not effective (B). These conclusions cover the spectrum of possible outcomes of internal control testing.

At the End of Internal Control Testing,the Auditor May Conclude