In the audit of a public company, automated controls must be tested if they are considered to be key controls for reducing the likelihood of material misstatements in the financial statements.

Question

Quizplus · Accepted Answer

This is correct according to auditing standards and requirements for public companies. Key controls, whether manual or automated, must be tested to ensure they are operating effectively in reducing the risk of material misstatements in the financial statements.

In the Audit of a Public Company, Automated Controls Must