L6 Tests of Control

Question 1

If control risk is assessed at _____, the auditor ___ ___ ________ ____ __ ____.

Answer 1

If control risk is assessed at high, the auditor will not undertake test of controls.

Question 2

True or False: When control risk is assessed at less than high, it is necessary to gather evidence that controls are working.

Answer 2

True. This evidence is gathered via test of controls.

Auditor selects most efficient and effective combination of tests of controls, substantive tests of transactions, balances and substantive analytical procedures.