Whether the auditor chooses to test or not to test internal controls,the auditor is required to
A)obtain an understanding of internal controls relevant to the audit
B)perform substantive test of transactions
C)perform analytical procedures
D)perform substantive test of balances

Question

Quizplus · Accepted Answer

Regardless of whether the auditor chooses to test internal controls or not, the auditor is still required to obtain an understanding of the client's internal controls relevant to the audit in order to identify any material weaknesses or deficiencies that may impact the audit. Choices B, C, and D are all specific audit procedures that may or may not be necessary depending on the auditor's assessment of the client's internal controls and the risk of material misstatement.

Whether the Auditor Chooses to Test or Not to Test