It is not always practicable to apply tests of controls to transactions over the entire year.

Name: It is not always practicable to apply tests of controls to transactions over the entire year.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Testing controls over the entire year may not be practical due to resource limitations, timing constraints, or changes in the control environment during the year. Therefore, a risk-based approach is often taken to identify and test controls that are most critical and relevant to the financial statements.

It Is Not Always Practicable to Apply Tests of Controls