Tests of controls are procedures are procedures performed by the auditor to obtain information for identifying and assessing the risks of material misstatement in the financial statements.

Question

Quizplus · Accepted Answer

Tests of controls are procedures performed by the auditor to evaluate the effectiveness of a client's internal controls, not directly to identify and assess risks of material misstatement in the financial statements. Identifying and assessing risks of material misstatement is achieved through risk assessment procedures.

Tests of Controls Are Procedures Are Procedures Performed by the Auditor