Which of the following is an incorrect characterization of the auditor\'s test a

Question

Which of the following is an incorrect characterization of the auditor's test and evaluation of the operating effectiveness of a control in an audit of ICFR (integrated audit)? a. The objective of the test and evaluation of controls is to obtain evidence on whether the control is operating as designed. b. The auditor does not use the procedure of inquiry to test and evaluate the operating effectiveness of a control c. The timing of tests of controls is to determine whether the controls are operating "as of" date indicated in management's internal control report. d. The auditor incorporate knowledge obtained from prior years' audits into the judgment process for determining the extent of testing for the current year audit.

Explanation / Answer

Option B is the answer.

When the Auditor realises, the substantive procedures are not enough in a given situation, he should perform tests of control to obtain sufficient and appropriate audit evidnece. Inquiries of appropriate personnel of the entity, document inspection etc are part of tests of the operating effevtiveness of controls.

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