Question

When assessing risk control, the auditor must do all of the following except

A) assess control risk for each objective by evaluating the controls and deficiencies for each objective.
B) perform the detailed test of balances.
C) identify the key internal controls and deficiencies.
D) associate the key controls and deficiencies with the objectives.

Answer 1

During the risk control assessment, an auditor is not typically required to perform the detailed test of balances, which is part of substantive testing post risk assessment. Option B)

Step-by-step explanation:

When assessing risk control, the auditor must perform various tasks except for one which is not generally part of this phase. The tasks that an auditor must do include:

• Assess control risk for each objective by evaluating the controls and deficiencies for each objective.
• Identify the key internal controls and deficiencies.
• Associate the key controls and deficiencies with the objectives.

The task that an auditor is not typically required to perform during the risk control assessment phase is:

• Perform the detailed test of balances.

Performing detailed tests of balances is usually part of the substantive testing process that occurs after risks have been assessed.