When tests internal controls do not support a previous conclusion about internal controls, the auditor should _______.
A)obtain assurances about internal control from senior management
B)reassess internal controls at a higher level
C)consider withdrawing from the engagement
D)lower inherent risk related to internal control

Question

Quizplus · Accepted Answer

When tests of internal controls do not support a previous conclusion about internal controls, the auditor should reassess internal controls at a higher level (e.g. entity-level controls) to determine whether there are any deficiencies that could affect the overall control environment. It is not appropriate to simply obtain assurances from senior management, as this does not provide sufficient evidence. Withdrawing from the engagement would only be necessary if there were significant and pervasive deficiencies in internal controls that could not be remedied. Lowering inherent risk related to internal control would also not be appropriate, as the auditor's assessment of inherent risk should be independent of the assessment of internal controls.

When Tests Internal Controls Do Not Support a Previous Conclusion