Based on a study and evaluation completed at an interim date,the auditor concludes that no significant internal control weaknesses exist.The records and procedures would most likely be tested again at year-end if
A) Compliance tests were not performed by the internal audit staff during the remaining period.
B) The internal control system provides a basis for reliance in reducing the extent of substantive procedures.
C) The auditor used nonstatistical sampling during interim compliance testing.
D) Inquiries and observations lead the auditor to believe that conditions within the internal control system have changed.

Question

Quizplus · Accepted Answer

If inquiries and observations lead the auditor to believe that conditions within the internal control system have changed, the records and procedures would need to be tested again at year-end to ensure that no significant internal control weaknesses have developed since the interim testing. Options A, B, and C do not relate to the need for further testing based on changing conditions within the internal control system.

Based on a Study and Evaluation Completed at an Interim