Once the auditor concludes that internal controls are operating effectively in the acquisition and the payment cycle, the verification of accounts payable should require little audit effort.

Question

Quizplus · Accepted Answer

If internal controls are operating effectively, there is less risk of material misstatement in the accounts payable balance. Therefore, the audit effort can be reduced, but it is still necessary to perform some substantive procedures to ensure the completeness and accuracy of the balance.

Once the Auditor Concludes That Internal Controls Are Operating Effectively