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 auditor 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

The auditor's evaluation of internal controls at interim date may have changed due to changes within the internal control system. In this case, the auditor would need to test the records and procedures again at year-end. Therefore, choice D is the best answer. Choices A, B, and C are not related to the reason for re-testing at year-end.

Based on a Study and Evaluation Completed at an Interim