Auditing & Assurance Services 6th Edition by Timothy Louwers

Exercise 52

According to the PCAOB, during the audit of internal controls for an issuer, the ultimate objective of testing the design effectiveness of internal controls is to
A) Determine whether the company's controls are processing company data effectively.
B) Determine that the company's controls will satisfy the company's control objectives and can effectively prevent or detect errors or fraud that could result in material misstatements, if they operate as prescribed.
C) Determine that the company's employees are processing the controls according to the policy and procedures manuals at the company.
D) None of the above.