After finishing the review phase of the study and evaluation of internal control in an audit, the auditor should perform tests of controls on:
A) those controls that the auditor wants and plans to rely upon.
B) those controls in which material weaknesses were identified.
C) those controls that have a material effect upon the financial statement balances.
D) a random sample of the controls that were reviewed.

Question

Quizplus · Accepted Answer

The primary objective of performing tests of controls is to evaluate the operating effectiveness of those controls that the auditor wants and plans to rely upon in order to provide reasonable assurance that the financial statements are free from material misstatement. Therefore, the auditor should only perform tests of controls on those controls that are relevant to the audit, which are the controls that the auditor plans to rely upon for the purposes of the audit.

After Finishing the Review Phase of the Study and Evaluation