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:

Indirect Costs

Costs that are not directly attributable to a specific job, product, or activity, making them difficult to trace.

Complexity

The state or quality of being intricate or complicated, often making tasks or understanding more difficult.

Machine Setup

The process of preparing a machine for a specific task or production run, including assembly, configuration, and calibration to ensure it operates correctly and efficiently.

Quality Inspection

The process of reviewing and testing products to ensure they meet the specified standards and requirements.