An auditor gathers evidence on internal controls for which respective time periods for the purposes of expressing an opinion on (1)control effectiveness and for (2)testing controls in the financial statement period? Control Effectiveness Financial Statement
A)(1)As of year-end (2)As of year end
B)(1)As of year-end (2)Throughout the year
C)(1)Throughout the year (2)As of year end
D)(1)Throughout the year (2)Throughout the year

Question

Quizplus · Accepted Answer

For expressing an opinion on control effectiveness, the auditor gathers evidence as of year-end. However, for testing controls in the financial statement period, the auditor needs to gather evidence throughout the year. Therefore, the best choice is B where (1) As of year-end is selected for expressing an opinion on control effectiveness, and (2) Throughout the year is selected for testing controls in the financial statement period.

An Auditor Gathers Evidence on Internal Controls for Which Respective