Which of the following emerge as a problem when auditors rely on internal control evidence rather than engage in detail testing when performing an audit?
A)internal controls rarely apply to management activities or decisions
B)companies use internal controls for estimation transactions
C)auditors who rely on internal controls may neglect transactions that are routine
D)management can often override internal controls
E)both A and D
F)both B and E
G)both C and E

Question

Quizplus · Accepted Answer

Internal controls may not always cover management activities or decisions, and management has the ability to override these controls, which can lead to issues if auditors rely too heavily on them without detailed testing.

Which of the Following Emerge as a Problem When Auditors