alleryStart learning →When should an auditor perform a test of control?
APlanning to lower control risk
BWhen there are no controls
CAfter the audit is complete
DWhenever the client objects
Answer & Solution
Correct answer: A. Planning to lower control risk
Controls are tested to support a lower control risk assessment and thus less substantive work.
Keep practising Financial Audit
Browse all Financial Audit questions for CA Final, or explore more Auditing topics.
Related questions
Which 2002 law led to the creation of the PCAOB?Which firm hid off-book liabilities from banks and shareholders before collapsing?Which office now audits UK government expenditure?Gladstone's 1866 Act made departments produce which annual accounts?Which body did the Securities Exchange Act of 1934 create?Which of these is a method of gathering audit evidence?Why can an audit not give absolute assurance?Financial statements aim to give information useful to whom?