After performing a study and evaluation of the client's system of internal control, an auditor concludes that the system is well designed and functioning as anticipated.Under these circumstances, the auditor would most likely:
A) perform all tests of controls to the extent outlined in the preplanned audit program.
B) not increase the extent of predetermined substantive tests.
C) cease to perform further substantive tests.
D) increase the extent of anticipated analytical review procedures.

Question

Quizplus · Accepted Answer

If the auditor concludes that the system of internal control is well designed and functioning as anticipated, there is no need to increase the extent of predetermined substantive tests. However, the auditor should still perform all tests of controls to the extent outlined in the preplanned audit program to ensure that the controls are functioning as intended.

After Performing a Study and Evaluation of the Client's System