Tests of controls should be performed after substantive tests of transactions.

Name: Tests of controls should be performed after substantive tests of transactions.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Tests of controls should be performed prior to substantive tests of transactions to evaluate the effectiveness of the client's internal controls. This allows auditors to assess the risk of material misstatements and tailor their substantive testing procedures accordingly.

Tests of Controls Should Be Performed After Substantive Tests of Transactions