Elm Tree Inc

Multiple Choice

Elm Tree Inc. has a December 31 year end. On October 15, the auditor evaluated and tested Elm Tree's internal control procedures over the sales recording process and finds the controls to be effective. At a minimum, the auditor's year-end procedures for testing internal control procedures must include:

A) confirmations of year-end accounts that were examined on October 15.
B) tests the client's internal control procedures from October 15 through the year end.
C) tests of compliance with internal control for a random sample of transactions throughout the audit period.
D) a comparison of the responses to the auditor's internal control questionnaire with a detailed flowchart of control procedures at year end.