If the tests of controls confirm the auditor's preliminary evaluation of controls, the planned substantive audit procedurare:
A) increased.
B) not modified.
C) reduced.
D) changed.

Question

Quizplus · Accepted Answer

If the tests of controls confirm the auditor's preliminary evaluation of controls, it means that the auditor's expectation of the operating effectiveness of controls is achieved. Therefore, there is no need to modify the planned substantive audit procedures since the controls are reliable, and there is a lower risk of material misstatement. This means that the auditor can rely on those controls and perform fewer substantive procedures.

If the Tests of Controls Confirm the Auditor's Preliminary Evaluation