Determine the likely effect, increase, OR decrease, on the extent of control testing for the following eleven
Question:
Determine the likely effect, increase, OR decrease, on the extent of control testing for the following eleven (11) situations.
Situations | Increase or decrease |
1. The control is performed less frequently than other controls. | |
2. The auditor intends to rely heavily on the particular controls. | |
3. The performance of the control results in little or no direct evidence that the control operated effectively. | |
4. The auditor needs evidence only as yet year-end. | |
5. Other controls relating to the particular objective are in place and are being tested. | |
6. The What Can Go Wrong (WCGW) is very important. | |
7. There have been no changes in the accounting system during the accounting period. | |
8. The auditor plans to perform very little substantive testing in the area. | |
9. Direct evidence about the effective operation of the control is available. | |
10. The auditor requires evidence of the control’s effective operation throughout the entire accounting period. | |
11. The inherent risk in this area is very high. |