When the entity's control environment has been assessed as effective, limited roll-forward procedures such as substantive analytical procedures are necessary.

Question

Quizplus · Accepted Answer

If the control environment has been assessed as effective, it means that the internal controls are operating effectively, and therefore, it is reasonable to rely on them. In this case, limited roll-forward procedures such as substantive analytical procedures are necessary to ensure that nothing has changed from the interim period to the year-end. This will provide sufficient evidence to support the financial statement assertions.

When the Entity's Control Environment Has Been Assessed as Effective