Which of the following statements is true?
A)Testing of controls is the most cost efficient way of designing each audit.
B)Substantive testing is the most cost efficient way of designing each audit.
C)As the work of testing of controls increases, the cost of substantive work increases.
D)There is a point where further testing of controls becomes more expensive than performing substantive test.

Question

Quizplus · Accepted Answer

There is a point where further testing of controls becomes more expensive than performing substantive tests, as excessive control testing can lead to diminishing returns and increased costs.

Which of the Following Statements Is True