Tests of controls will usually be carried out
A) at an interim date.
B) only after year-end.
C) only by the audit engagement partner.
D) by the client's board of directors.

Question

Quizplus · Accepted Answer

Tests of controls are usually carried out at an interim date to provide the auditor with sufficient evidence for the effectiveness of internal controls. This is done before the year-end audit to identify any weaknesses in the system and make recommendations for improvements. Testing controls only after year-end would not be efficient as it may be too late to make adjustments. The client's board of directors are not responsible for carrying out tests of controls, it is the auditor's responsibility to perform this task.

Tests of Controls Will Usually Be Carried Out