After Considering a Client's Internal Controls, an Auditor Has Concluded

question 61

Multiple Choice

After considering a client's internal controls, an auditor has concluded that it is well designed and is functioning as intended. Under these circumstances, the auditor would most likely

• A) perform tests of controls to the extent outlined in the audit program.
• B) determine the control procedures that should prevent or detect errors and irregularities.
• C) use a combined audit approach that includes tests of controls and substantive tests.
• D) determine whether transactions are recorded to permit preparation of financial statements in accordance with generally accepted accounting principles.

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