Elm Tree Inc. has a December 31 year end. On October 15, the auditor evaluated and tested Elm Tree's internal control procedures over the sales recording process and finds the controls to be effective. At a minimum, the auditor's year-end procedures for testing internal control procedures must include:
A)confirmations of year-end accounts that were examined on October 15.
B)tests the client's internal control procedures from October 15 through the year end.
C)tests of compliance with internal control for a random sample of transactions throughout the audit period.
D)a comparison of the responses to the auditor's internal control questionnaire with a detailed flowchart of control procedures at year end.

Question

Quizplus · Accepted Answer

The auditor's year-end procedures for testing internal control procedures must include testing the client's internal control procedures from October 15 through the year end, as the controls could have changed or become ineffective during that time period. The other options are not necessary or relevant for testing the effectiveness of internal control procedures at year-end.