After the auditor has prepared a flowchart of the accounting system and control procedures surrounding sales, and assessed the design of the system, the auditor would perform tests of controls for all control procedures:
A)documented in the flowchart.
B)considered to be deficiencies that might allow errors to enter the accounting system.
C)considered to be strengths that the auditor plans to use as a basis for an assessed level of control risk less than high.
D)that would aid in preventing irregularities.

Question

Quizplus · Accepted Answer

The auditor performs tests of controls for procedures considered to be strengths and plans to rely on for assessing control risk at less than high. This approach allows the auditor to evaluate the effectiveness of these controls in preventing or detecting errors or fraud.

After the Auditor Has Prepared a Flowchart of the Accounting