The purpose of tests of controls is to provide reasonable assurance that the
A) accounting treatment of transactions and balances is valid and proper.
B) internal control procedures are functioning as intended.
C) entity has complied with GAAP disclosure requirements.
D) entity has complied with requirements of quality control.

Question

Quizplus · Accepted Answer

The purpose of tests of controls is to provide reasonable assurance that the internal control procedures are functioning as intended. Tests of controls are conducted to evaluate and ensure that the organization's internal controls are operating effectively to achieve their intended objectives. These tests are done to assess the effectiveness of internal control procedures in preventing, detecting, and correcting errors and irregularities in the organization's financial statements.

The Purpose of Tests of Controls Is to Provide Reasonable