The auditor selects entity-wide controls for testing,but not transaction controls specific to long-lived assets.

Question

Quizplus · Accepted Answer

Entity-wide controls are important for setting the tone and control environment of an organization, but auditors also need to test transaction controls specific to significant areas, such as long-lived assets, to ensure proper recording, valuation, and presentation in financial statements.

The Auditor Selects Entity-Wide Controls for Testing,but Not Transaction Controls