Final answer:
The primary objective of compliance testing in a financial statement audit is to determine the effectiveness of internal controls, not the accuracy of financial statement amounts, updates to procedures, or explicit detection of collusion.
Step-by-step explanation:
The primary objective of compliance testing in a financial statement audit is to determine whether internal controls are functioning as designed. Compliance testing, also known as internal control testing, involves auditor evaluation of an organization's controls, policies, and procedures to ensure they are operating effectively and preventing errors, fraud, or non-compliance with applicable laws and regulations. It does not directly focus on whether financial statement amounts are accurately stated; this is addressed during substantive testing. Furthermore, while compliance testing may uncover evidence of collusion, detecting collusion is not its primary purpose. Lastly, whether procedures have been updated regularly is a matter of design of the internal control system, but compliance testing specifically checks for operational effectiveness.