An auditor may decide not to perform tests of controls related to the control activities within the computer portion of the client's internal control.Which of the following would not be a valid reason for choosing to omit such test? A)The controls duplicate operative controls existing elsewhere. B)There appear to be major weaknesses that would preclude reliance on the stated procedure. C)The time and dollar costs of testing exceed the time and dollar savings in substantive testing if the tests show the controls to be operative. D)The controls appear adequate.

Question

Quizplus · Accepted Answer

The auditor may decide not to perform tests of controls if they duplicate other controls, if there are major weaknesses, or if the cost of testing exceeds the benefits. However, if the controls appear adequate, this is not a valid reason to omit testing; it's actually a reason to consider testing to rely on those controls.

An Auditor May Decide not to Perform Tests of Controls