In evaluating internal control, the auditor is basically concerned that the system provides reasonable assurance that:
A)operational efficiency has been achieved in accordance with management plans.
B)material misstatements have been prevented, or detected and corrected.
C)controls have not been circumvented by collusion.
D)management cannot override the system.

Question

Quizplus · Accepted Answer

The primary objective of evaluating internal controls is to ensure that material misstatements in the financial statements are prevented, or if they do occur, they are detected and corrected in a timely manner. The other options may be important, but they are not the primary concern of the auditor when evaluating internal controls.

In Evaluating Internal Control, the Auditor Is Basically Concerned That