When does the auditor normally conduct tests of controls?
A)prior to the completion of the tests of details
B)after the completion of all analytical review
C)prior to the preparation of the client risk analysis
D)prior to the finalization of the audit risk model

Question

Quizplus · Accepted Answer

The auditor normally conducts tests of controls prior to the completion of the tests of details. This is because tests of controls provide the auditor with evidence about the operating effectiveness of controls, which can impact the reliance that can be placed on the controls in reducing substantive testing. Therefore, testing controls prior to completing the tests of details would allow the auditor to determine the appropriate level of reliance on controls and minimize the risk of testing details that may be unnecessary.

When Does the Auditor Normally Conduct Tests of Controls