Which of the following audit tests form the basis for an auditor's report on internal control over financial reporting?
A) analytical procedures
B) tests of transactions
C) tests of controls
D) tests of details of balances

Question

Quizplus · Accepted Answer

Tests of controls are the basis for an auditor's report on internal control over financial reporting. These tests are designed to evaluate the effectiveness of internal controls in preventing or detecting material misstatements in the financial statements. Analytical procedures, tests of transactions, and tests of details of balances are typically used to gather evidence about the completeness, accuracy, and validity of the financial statements themselves.

Which of the Following Audit Tests Form the Basis for an Auditor's