Select the right answer

Assume the auditor finds that the controls are working properly. Which of the following are correct inferences regarding the planning of the remainder of the audit?

A. The auditor willnot need to perform direct tests on the valuation of accounts receivable.

B. The auditor cannotconclude that the internal controls over credit are effective unless theauditor determines that the credit limits are reasonable.

C. The auditor doesnot need to confirm accounts receivable because the risk of a materialmisstatement of receivables is mitigated by the controls.

D. The auditor doesnot need to perform any more direct tests of the account balances if theauditor had tested the IT general controls.