When the auditor decides to include controls testing in their audit strategy,they select those controls that:
A)provide no assurance that the controls operated effectively throughout the period of reliance.
B)are the easiest to test.
C)provide the most efficient and effective audit evidence.
D)provide the least efficient and effective audit evidence.

Question

Quizplus · Accepted Answer

The auditor should select those controls that provide the most efficient and effective audit evidence because such controls would enable the auditor to reduce the amount of substantive testing. Selecting controls that provide the least efficient and effective audit evidence would not be useful for the auditor as it would require the auditor to perform more substantive testing, which would increase the audit effort and cost. Selecting controls that provide no assurance that the controls operated effectively throughout the period of reliance would imply that the controls cannot be relied upon, which defeats the purpose of controls testing. Selecting controls that are the easiest to test may not necessarily provide the most meaningful evidence, and may also result in the auditor overlooking or underestimating more important controls.

When the Auditor Decides to Include Controls Testing in Their