After considering a client's internal controls,an auditor has concluded that the internal controls are well designed and are functioning as intended.Under these circumstances,the auditor would most likely
A)perform tests of controls to the extent outlined in the audit program.
B)determine the control procedures that should prevent or detect errors and irregularities.
C)use a combined audit approach that includes tests of controls and substantive tests.
D)determine whether transactions are recorded to permit preparation of financial statements in accordance with generally accepted accounting principles.

Question

Quizplus · Accepted Answer

When an auditor concludes that a client's internal controls are well designed and functioning as intended, they often use a combined audit approach. This approach includes both tests of controls to assess the effectiveness of the internal controls and substantive tests to directly test for material misstatements in the financial statements. This strategy allows the auditor to rely on the controls to some extent, reducing the extent of substantive testing needed.

After Considering a Client's Internal Controls,an Auditor Has Concluded That