At the end of internal control testing,the auditor may conclude that
A)internal controls are effective in preventing or detecting misstatements for the assertions tested for the significant accounts in the business process
B)internal controls are effectively designed to prevent or detect misstatements for the significant accounts in the business process
C)internal controls are not effectively designed for the significant accounts in the business process
D)internal controls are not effective for the procedures tested for the significant accounts in the business process

Question

Quizplus · Accepted Answer

At the end of internal control testing, the auditor's objective is to determine whether the internal controls are effective in preventing or detecting misstatements for the assertions tested for the significant accounts in the business process. Option A is the correct choice as it indicates that the internal controls are effective in achieving their intended purpose. Option B is incorrect as it only focuses on the design of the internal controls, but does not provide information on their effectiveness. Option C suggests that the internal controls are not effective, which contradicts the objective of internal control testing. Option D is also incorrect as it confuses the effectiveness of the internal controls with the particular procedures tested.

At the End of Internal Control Testing,the Auditor May Conclude