An internal auditor is conducting a financial audit. Which of the following audit procedures is most appropriate when existing internal controls are weak?
An internal auditor is conducting a financial audit. Which of the following audit procedures is most appropriate when existing internal controls are weak?
When internal controls are weak, reliance on those controls for ensuring accuracy and reliability of financial reporting is not advisable. Hence, detailed testing becomes the most appropriate audit procedure. Detailed testing involves examining the underlying financial records and transactions to obtain evidence on their accuracy and completeness. This approach allows the auditor to directly verify the financial data, which is crucial in the absence of robust internal controls.
Because existing controls are weak, IA cannot rely on those controlls and should perform detail testing to evaluate accuracy of financial reports.
Why not C or D?