Control tests are required for
A)obtaining evidence about the operating effectiveness of company control procedures.
B)analytical review of financial statement balances.
C)accomplishing control over the validity of recorded transactions.
D)obtaining evidence about the financial statement assertions.

Question

Quizplus · Accepted Answer

Control tests are specifically designed to test the operating effectiveness of a company's control procedures. This is necessary to ensure that the procedures are functioning as intended and that the company's financial statements are free from material misstatements. Control tests are a form of substantive testing, which is designed to obtain evidence about the financial statement assertions. Analytical review and accomplishing control over the validity of recorded transactions are both important aspects of financial statement auditing, but they do not involve control testing specifically.

Control Tests Are Required for