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

Question

Quizplus · Accepted Answer

If the auditor determines that the client has effective internal controls to mitigate a specific risk, the auditor will likely test those controls to confirm their effectiveness. Testing internal controls reduces the extent of substantive testing that the auditor must perform elsewhere in the audit. Therefore, the most appropriate choice is A.

If an Auditor Decides That a Client Has Internal Controls