When designing tests of controls, the emphasis is on testing controls that:
A) the auditor intends to rely on to reduce control risk.
B) are associated with material account balances.
C) the auditor believes may not be functioning effectively.
D) are material.

Question

Quizplus · Accepted Answer

The objective of testing controls is to identify any potential weaknesses that may result in material misstatements. The auditor intends to rely on certain controls to reduce control risk, and these controls are therefore the focus of testing. Testing controls that are not intended to reduce control risk or are not associated with material account balances may not be necessary or cost-effective.

When Designing Tests of Controls, the Emphasis Is on Testing