Confirming the existence,assessing the effectiveness,and checking the continuity of the operation of the internal controls upon which reliance is placed is called
A) compliance testing.
B) financial statement auditing.
C) auditing "around-the-computer."
D) substantive testing.

Question

Quizplus · Accepted Answer

Compliance testing involves confirming the existence, assessing the effectiveness, and checking the continuity of the operation of the internal controls upon which reliance is placed during an audit. This is distinct from substantive testing, which is focused on verifying the actual financial information and transactions.

Confirming the Existence,assessing the Effectiveness,and Checking the Continuity of the Operation