At the completion of the tests of controls and substantive tests of transactions, auditors must analyze each exception to determine its cause and the implication of the exception on assessed control risk.

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Quizplus · Accepted Answer

This statement is true. After completing the tests of controls and substantive tests of transactions, auditors must analyze each exception to determine the root cause and the impact on assessed control risk. This analysis helps auditors to form an opinion on the financial statements and make appropriate recommendations to the client.

At the Completion of the Tests of Controls and Substantive