For each control on which the auditor plans to rely to reduce assessed control risk,he or she must
A)design one or more tests of controls to verify effectiveness.
B)report all weaknesses in the management letter.
C)quantitatively determine the effect on sampling error.
D)ensure that the test applies to several different transaction audit objectives.

Question

Quizplus · Accepted Answer

In order for the auditor to rely on a control to reduce assessed control risk, they must design tests of controls to verify its effectiveness. Without testing the control, the auditor cannot have assurance that it is functioning as intended. Reporting weaknesses in the management letter and determining the effect on sampling error are important aspects of the audit process, but they are not directly related to relying on controls to reduce assessed control risk. Ensuring that the test applies to several different transaction audit objectives is also important, but it is not the main factor in determining whether the auditor can rely on a control.

For Each Control on Which the Auditor Plans to Rely