Multiple Choice
Tests of controls are conducted when:
A) the auditor determines that substantive testing is not effective.
B) control risk may be higher than the initial assessment.
C) controls are expected to be operating effectively.
D) controls are not operating as effectively as initially assessed.
Correct Answer:
Verified
Correct Answer:
Verified
Q1: Certain relevant principles dictate the proper design
Q3: An example of a monitoring activity would
Q4: For efficiency, if internal controls are ignored,
Q6: It is not always practicable to apply
Q7: Once an understanding of the client's internal
Q8: It is more common for the auditor's
Q9: When planning an audit, the auditor's assessed
Q10: If evidence was obtained in the prior
Q11: Procedures used to obtain an understanding of
Q11: A major control available in a small