After considering the client's internal control,the auditors have concluded that it is well-designed and is functioning as anticipated.Under these circumstances,the auditors would most likely:
A)Cease to perform further substantive procedures.
B)Reduce substantive procedures in areas where the internal control was found to be effective.
C)Increase the extent of anticipated analytical procedures.
D)Perform all tests of controls to the extent outlined in the preplanned audit plan.

Question

Quizplus · Accepted Answer

If the auditors have determined that the client's internal control is well-designed and functioning as anticipated, they can rely on it to some extent. Thus, they may reduce the extent of substantive procedures in areas where the internal control was found to be effective. However, they cannot completely cease to perform further substantive procedures, as there may still be areas of risk that require testing. Increasing the extent of anticipated analytical procedures may not be necessary if the internal control is already effective. Finally, the performance of all tests of controls as outlined in the preplanned audit plan may not be necessary if the auditors have determined that the internal control is effective.

After Considering the Client's Internal Control,the Auditors Have Concluded That