If an auditor decides that a client has internal controls that can reduce the likelihood of a material misstatement for an identified risk, the auditor will:
A) test those controls.
B) qualify the audit report.
C) adopt a predominantly substantive approach.
D) not test those controls.

Question

Quizplus · Accepted Answer

If the auditor determines that the client's internal controls are effective, they will typically test those controls to further evaluate their effectiveness in preventing material misstatements. This is known as a control reliance approach.

If an Auditor Decides That a Client Has Internal Controls