Control tests should be applied to samples of transactions and control procedures ________.
A)that occurred during the interim audit so that they provide direct auditor's knowledge
B)selected by management as being representative of all transactions processed
C)throughout the period being audited
D)that occur primarily close to reporting period ends such as year-end or quarter-end

Question

Quizplus · Accepted Answer

Control tests should be applied throughout the period being audited to ensure that control procedures are consistently effective and that any potential errors or fraud are identified and corrected in a timely manner. Selecting samples from only the interim or close to reporting period ends may not be representative of the entire period being audited. Similarly, relying solely on management-selected samples may not offer the necessary independence and objectivity required of auditors.

Control Tests Should Be Applied to Samples of Transactions and Control