An auditor's primary consideration in evaluating controls is whether specific controls:

Question

Quizplus · Accepted Answer

Choice "A" is correct. An auditor's primary consideration in evaluating controls is whether specific controls affect financial statement assertions, since ultimately the auditor must render an opinion on whether those assertions are fairly stated. Choice "B" is incorrect. The five components of internal control provide a useful framework for the auditor to evaluate the impact of such controls on an audit, but such classification is not the auditor's primary consideration. Choice "C" is incorrect. Although a proper system of internal control may improve the client's operational efficiency, it is not a primary consideration for the auditor. Choice "D" is incorrect. The auditor controls detection risk by varying the nature, timing, and extent of substantive tests. Whether or not a proper system of controls is in place affects control risk, not detection risk.

An Auditor's Primary Consideration in Evaluating Controls Is Whether Specific