Tests of controls are performed to determine whether or not:
A) control policies and procedures are functioning as designed.
B) necessary controls are absent.
C) incompatible functions exist.
D) material dollar misstatements exist.

Question

Quizplus · Accepted Answer

Tests of controls are performed to determine whether control policies and procedures are functioning as designed. This helps auditors assess the risk of material misstatement in the financial statements. Testing controls can also help auditors identify weaknesses in the control environment and recommend improvements. Tests of controls are not specifically designed to determine whether necessary controls are absent, whether incompatible functions exist, or whether material dollar misstatements exist, although these issues may be identified during the testing process.

Tests of Controls Are Performed to Determine Whether or Not