For a practitioner to examine management's assertions about the effectiveness of internal controls,all of the following conditions are necessary except:
A) Sufficient competent evidence can be developed to support the evaluation.
B) The practitioner must have already concluded that the financial statements are fairly presented in accordance with the applicable accounting framework.
C) The entity's management accepts responsibility for the effectiveness of its internal control.
D) All of the conditions listed are necessary.

Question

Quizplus · Accepted Answer

While all three other conditions are necessary for a practitioner to examine management's assertions about the effectiveness of internal controls, the option B is false. The practitioner can evaluate the effectiveness of the internal control system before providing the opinion on the fair presentation of financial statements.

For a Practitioner to Examine Management's Assertions About the Effectiveness