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)test 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 that is the date the auditor evaluated and tested the controls and found them to be effective. This will provide assurance that the controls remained effective throughout the audit period. The other options are not relevant in this context and do not provide sufficient assurance regarding the effectiveness of internal control procedures.