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RTP Nov 2019 MCQ

Herein attaching a screenshot of the Nov 2019 RTP. I'm finding MCQ No 5 to be difficult. The right answer as per the answer key is D where they increase reliance on controls and increase extent of testing. But I feel that would be counter effective since they are testing how good controls are and chose option A- increase testing and decrease reliance on controls. Could you please help me understand how it is D?

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Suraj Narayanan

Suraj Narayanan

CA Inter

7K+

03-Sep-20 17:32

53

Answers (4)

Best Answer

If you get persuasive evidence, it means controls working effectively.


Suraj Lakhotia

Suraj Lakhotia

Admin

04-Sep-20 11:19

More persuasive audit evidence, the greater the auditor relies on the control effectiveness


Suraj Lakhotia

Suraj Lakhotia

Admin

04-Sep-20 11:12

More persuasive audit evidence, the greater the auditor relies on the control effectiveness

But since the objective is to determine the effectiveness of controls, how will great reliance on controls prove that the controls are working well sir?


Suraj Narayanan

Suraj Narayanan

CA Inter

7K+

04-Sep-20 11:15

If you get persuasive evidence, it means controls working effectively.

Alright sir. Thank you


Suraj Narayanan

Suraj Narayanan

CA Inter

7K+

04-Sep-20 11:19

Happy Mother's Day
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