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ivolga24 [154]
3 years ago
8

In a financial statement audit performed following AICPA Professional Standards, how frequently must an auditor test operating e

ffectiveness of controls that appear to function as they have in past years and on which the auditor wishes to rely upon in the current year?
A. Monthly.
B. Each audit.
C. At least every second audit.
D. At least every third audit.
Business
1 answer:
Anni [7]3 years ago
3 0

Answer: D. At least every third audit

Explanation: According to the AICPA Professional Standards of auditing. Testing the operating effectiveness of controls that appear to function as they have in past years and on which the auditor wishes to rely upon in the current year must be carried out at least every 3rd Audit.

This is done if the auditor plans to use audit evidence from a prior audit about the operating

effectiveness of specific controls. The auditor shall establish the continuing relevance of that

evidence by obtaining audit evidence about whether changes in those controls have

occurred subsequent to the previous audit.

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Explanation:

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ou own a portfolio that has $2,700 invested in Stock A and $3,800 invested in Stock B. Assume the expected returns on these stoc
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Answer:

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