h of the following is not a valid comparison of internal controls performed in t
ID: 2413510 • Letter: H
Question
h of the following is not a valid comparison of internal controls performed in the audit of ICFR (integra ted audit) and those performed in the audit of financial statements (financial audit)? a. In both the audit of ICFR and the audit of financial statements, the auditor is required to communicate in writin g to the audit committee all material weakness and significant deficiencies The auditor uses the same type of audit procedures to test controls in both the audit of ICFR b. and the audit of financial statements. e. If the auditor fails to obtain a written representation from management in both the audit of ICFR and the audit of financ ial statements, then there is a limitation on the scope of the audit sufficient to preclude an unqualified opinion. d. The objective of tests of controls in an audit of ICFR is to obtain evidence about the effectiveness of controls whereas the objective of tests of controls in an audit of financial statements is to obtain evidence when control risk is assessed at less than 100%.Explanation / Answer
4. Answer : "d The objective of tests ------------at less than 100%."
=> For internal control, we require only a relative comparison and effectiveness and 100% is not required. While for financial audit and statements, the evidence is required to get cent per cent accuracy.
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