For each significant internal control deficiency identified by the auditor, he or she should design one or more tests of controls to assess the extent of the deficiency and its effect on the financial statements.

Question

Quizplus · Accepted Answer

This statement is true. When the auditor identifies a significant internal control deficiency, they should design tests of controls to assess the extent of the deficiency and its impact on the financial statements. This helps the auditor determine the level of risk associated with the deficiency and the potential impact on the financial statements.

For Each Significant Internal Control Deficiency Identified by the Auditor