Control testing procedures provide no direct evidence of material misstatements in the auditee's statements

Question

Quizplus · Accepted Answer

Control testing procedures are designed to evaluate the effectiveness of internal control over financial reporting, but they do not provide direct evidence of material misstatements in the auditee's statements. This is because they focus on the design and implementation of controls rather than the actual occurrence of misstatements. Auditors must perform substantive testing to obtain direct evidence of material misstatements.

Control Testing Procedures Provide No Direct Evidence of Material Misstatements