The procedures used to test the effectiveness of the internal controls are known as
A) tests of transactions.
B) tests of controls.
C) substantive analytical procedures.
D) control risk.

Question

Quizplus · Accepted Answer

The procedures used to test the effectiveness of the internal controls are known as tests of controls. These tests evaluate the design and operation of internal controls to determine if they are functioning as intended, providing reasonable assurance that material misstatements are prevented or detected and corrected on a timely basis. Tests of transactions and substantive analytical procedures are other audit procedures, and control risk is a concept used in assessing audit risk.

The Procedures Used to Test the Effectiveness of the Internal