After obtaining an understanding of a client's IT control, an auditor may decide not to perform tests of controls within the IT portion of the client's system. Which of the following would not be a valid reason for choosing to omit tests of controls?
A) There appear to be major deficiencies that preclude reliance on the stated procedure.
B) The time and dollar costs of testing controls exceed the savings in substantive testing if the tests show the controls to be operative.
C) The controls appear to be adequate and thus can be relied upon in assessing the level of control risk.
D) The controls duplicate controls existing elsewhere in the system.

Question

Quizplus · Accepted Answer

If controls appear to be adequate, the auditor would typically perform tests of controls to confirm their effectiveness and potentially reduce substantive testing. Therefore, this is not a valid reason to omit tests of controls.

After Obtaining an Understanding of a Client's IT Control, an Auditor