Jennifer Schaefer, a public accountant, follows the philosophy of performing interim tests of controls on every December 31 audit as a means of keeping overtime to a minimum. Typically, the interim tests are performed sometime between August and November.
REQUIRED
a. Evaluate her decision to perform interim tests of controls.
b. Under what circumstances is it acceptable for her to perform no additional tests of controls as part of the year-end audit tests?
c. If she decides to perform no additional testing, what is the effect on other tests she performs during the remainder of the engagement?