After assessing internal controls are being effective in the sales and collection cycle, the auditor can assume that internal controls will be effective at each of the client's other transaction cycles.

Question

Quizplus · Accepted Answer

The effectiveness of internal controls in one cycle does not automatically translate to effectiveness in other cycles. Each cycle involves different types of transactions and risks, requiring separate evaluation and assessment of internal controls.

After Assessing Internal Controls Are Being Effective in the Sales