Tests of controls are directed toward the control's
A) efficiency.
B) effectiveness.
C) cost and effectiveness.
D) cost benefit ratio.

Question

Quizplus · Accepted Answer

Tests of controls are designed to determine whether control procedures are operating effectively in order to meet the objectives of the control. The objective of the control is to prevent or detect material misstatements in the financial statements, so the testing is aimed at determining the effectiveness of the control in achieving that objective. Efficiency, cost, and cost benefit ratio are all important considerations, but the primary objective of tests of controls is to assess effectiveness.

Tests of Controls Are Directed Toward the Control's