When auditors conclude that an internal control is effective,they will rely on the control to prevent and detect a material misstatement and reduce their detailed substantive procedures.

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When auditors conclude that an internal control is effective, they will rely on the control to prevent and detect a material misstatement and may reduce their detailed substantive procedures. This is because an effective internal control provides reasonable assurance that any errors or frauds will be prevented or detected and corrected in a timely manner. However, auditors cannot completely eliminate substantive procedures because internal controls may not be fool-proof, or there may be risks that are not covered by existing internal controls. Therefore, auditors use a combination of internal control testing and substantive procedures to reduce audit risk to an acceptably low level.

When Auditors Conclude That an Internal Control Is Effective,they Will