Based on a study and evaluation completed at an interim date, the auditor concludes that no significant internal accounting control weaknesses exist. The records and procedures would most likely be tested again at year-end if:
A) the internal accounting control system provides a basis for reliance in reducing the extent of substantive testing.
B) tests of controls were not performed by the internal auditor during the remaining period.
C) inquiries and observations lead the auditor to believe that conditions have changed.
D) the auditor uses non-statistical sampling during interim compliance testing.

Question

Quizplus · Accepted Answer

If inquiries and observations lead the auditor to believe that conditions have changed, it may indicate that the internal controls could have been affected, necessitating further testing at year-end.

Based on a Study and Evaluation Completed at an Interim