When internal controls over a given financial statement account are assessed as highly effective, the auditor need not obtain audit evidence for that account beyond testing the controls.

Question

Quizplus · Accepted Answer

Even if internal controls over a given financial statement account are assessed as highly effective, the auditor still needs to obtain audit evidence for that account beyond testing the controls to provide reasonable assurance that the financial statements are free from material misstatement. This may include substantive procedures such as analytical procedures or tests of details. Therefore, the statement given in the question is false.

When Internal Controls Over a Given Financial Statement Account Are