If the control procedures are not designed properly or are not operating properly,the auditor will need to
A)develop a fraud risk factor for the missing internal control
B)design additional test of controls for mitigating factors
C)design substantive tests to determine whether the missing internal controls have led to misstatements in the financial statements
D)determine whether the existing internal controls effectively prevent misstatements or detect misstatements in the financial statements

Question

Quizplus · Accepted Answer

If control procedures are not designed properly or not operating properly, the auditor will need to design substantive tests to determine whether the missing internal controls have led to misstatements in the financial statements. Substantive tests examine the financial information directly to see if it contains errors or irregularities. The auditor will have to look for misstatements and inaccuracies in the financial statements to determine whether the control procedures are effective in preventing or detecting them.

If the Control Procedures Are Not Designed Properly or Are