The third phase of the audit involves performing audit tests. The primary purpose of this step is to obtain evidence about:
A) the integrity of management.
B) the effectiveness of management.
C) the effectiveness of the internal control structure.
D) the effectiveness and the integrity of management.
E) the effectiveness of the internal control structure and the fairness of the financial statements.

Question

Quizplus · Accepted Answer

The third phase of the audit, which involves performing audit tests, aims to gather evidence regarding the effectiveness of the internal control structure and the fairness of the financial statements. This helps auditors assess whether the financial statements are free from material misstatement, whether due to error or fraud, and whether the company's internal controls over financial reporting are effective.

The Third Phase of the Audit Involves Performing Audit Tests