AS 5 requires the audit team to do all the following except
A) Evaluate the severity of each control deficiency that comes to their attention.
B) Document the process used to determine significant accounts and disclosures and major classes of transactions.
C) Test all internal controls in the company.
D) All the above.

Question

Quizplus · Accepted Answer

AS 5 does not require the audit team to test all internal controls in the company. Instead, it requires the audit team to identify and evaluate significant accounts and disclosures and major classes of transactions, and to evaluate the severity of control deficiencies that come to their attention.

AS 5 Requires the Audit Team to Do All the Following