For a practitioner to examine management's assertions about the effectiveness of internal controls,all of the following conditions are necessary except:
A) Sufficient competent evidence can be developed to support the evaluation.
B) The practitioner must have already concluded that the financial statements are fairly presented in accordance with the applicable accounting framework.
C) The entity's management accepts responsibility for the effectiveness of its internal control.
D) All of the conditions above are necessary.

Question

Quizplus · Accepted Answer

The condition that the practitioner must have already concluded that the financial statements are fairly presented in accordance with the applicable accounting framework is not necessary to examine management's assertions about the effectiveness of internal controls. The other conditions (sufficient competent evidence, management accepting responsibility for internal control effectiveness) are necessary for the examination.

For a Practitioner to Examine Management's Assertions About the Effectiveness