The purpose of tests of controls is to determine that account balances are properly stated.

Name: The purpose of tests of controls is to determine that account balances are properly stated.
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Question

Quizplus · Accepted Answer

The purpose of tests of controls is to determine whether the client's control procedures are properly designed and being followed. This is done to assess the risk of material misstatement in the financial statements, but it is not specifically focused on determining the accuracy of account balances.

The Purpose of Tests of Controls Is to Determine That