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Can an Auditor Place Complete Reliance on Internal Control to the Exclusion

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Essay

Can an auditor place complete reliance on internal control to the exclusion of other audit procedures? Explain your answer using the audit risk model.


Definitions:

Degrees of Freedom

The number of independent values or quantities which can be assigned to a statistical distribution without violating any constraints.

Obtained Value

The actual measured or computed value from a statistical analysis or experiment.

Chi-square Test

A nonparametric statistical test used to determine if there is a significant association between two categorical variables.

Mutually Exclusive

A statistical term describing two events that cannot occur at the same time, implying no overlap between the events.

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