Final answer:
In an audit of ICFR, entity-level controls are typically prioritized for testing by auditors because they influence the overall internal control system and the organizational tone.
Step-by-step explanation:
When performing an audit of internal controls over financial reporting (ICFR), an auditor is most likely to select entity-level controls for testing. These are the controls that have a pervasive effect on the organization's internal control system. Entity-level controls include factors such as the control environment, the company's philosophy and operating style, and the way management assigns authority and responsibility. Selecting these controls allows the auditor to ascertain the overall tone at the top, which can significantly affect other controls within the company.
In performing an audit of internal controls over financial reporting (ICFR), one of the steps involves the auditor identifying which controls to test. When selecting controls to test, the auditor would be most likely to choose entity-level controls. Entity-level controls are overarching controls that apply to the entire organization and help set the tone for the control environment.
Examples of entity-level controls include the organization's code of conduct, ethical policies, and the control environment set by management.