In evaluating the strength of internal control in determining the nature,timing and extent of substantive audit evidence to collect the auditor must form their own independent assessment.Audit evidence can be reduced based upon the effectiveness of management's monitoring controls.

Question

Quizplus · Accepted Answer

The statement is true, as the strength of internal control can affect the amount of substantive audit evidence required, and effective monitoring controls can reduce the need for additional evidence. However, the auditor must form their own assessment of the internal control, rather than relying solely on management's assertions or evidence.

In Evaluating the Strength of Internal Control in Determining the Nature,timing