An Auditor May Decide not to Perform Tests of Controls

question 44

Multiple Choice

An auditor may decide not to perform tests of controls related to the control activities within the computer portion of the client's internal control.Which of the following would not be a valid reason for choosing to omit such test?

• A)The controls duplicate operative controls existing elsewhere.
• B)There appear to be major weaknesses that would preclude reliance on the stated procedure.
• C)The time and dollar costs of testing exceed the time and dollar savings in substantive testing if the tests show the controls to be operative.
• D)The controls appear adequate.

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Definitions:

Spatial

Relating to, occupying, or having the character of space; often used in context with the ability to perceive or understand the arrangement of objects in space.

Elements

Fundamental components or principles that form the basic building blocks of more complex systems or concepts.

Defensive Reaction

A protective response to perceived threats or criticism.

Meeting

A gathering of two or more people convened for the purpose of achieving a common goal through discussion, sharing information, or making decisions.