An internal auditor is conducting a financial audit. Which of the following audit procedures is most appropriate when existing internal controls are weak?

The correct answer is B. Detail testing. When internal controls are weak, it is important for the auditor to rely less on the internal controls and instead perform more substantive testing. Detail testing involves examining a larger number of individual transactions or balances to gather sufficient evidence about the…

Conducting Internal Audit Engagements

Question

Options

AAnalytical procedures.
BDetail testing.
CTest of design.
DTest of control.

How the community answered

(43 responses)

A
2% (1)
B
77% (33)
C
14% (6)
D
7% (3)

Explanation

When internal controls are weak, it is important for the auditor to rely less on the internal controls and instead perform more substantive testing. Detail testing involves examining a larger number of individual transactions or balances to gather sufficient evidence about the accuracy and completeness of financial records. This method is appropriate because it does not rely on the effectiveness of internal controls, which are known to be weak in this scenario.

Topics

#financial audit#weak controls#detail testing#audit procedures

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