An auditor is not required to obtain evidence about the design and operation of the internal controls to reduce the assessment of control risk below maximum.

Question

Quizplus · Accepted Answer

An auditor is required to obtain evidence about the design and operation of the internal controls to determine whether they are effective in supporting the financial statement assertions. This may include testing the controls and assessing the risk of material misstatement. The auditor may then reduce the assessment of control risk based on the effectiveness of the controls. Therefore, the statement is false.

An Auditor Is Not Required to Obtain Evidence About the Design