Choice d is incorrect considering whether control

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Choice "d" is incorrect. Considering whether control activities can have a pervasive effect onfinancial statement assertions is part of the auditor's risk assessment process.When an auditor plans to rely on controls that have changed since they were last tested, which ofthe following courses of action would be most appropriate?a. Inquire of management as to the effectiveness of the controls.b.Test the operating effectiveness of such controls in the current audit.c. Document that reliance and proceed with the original audit strategy.d.Report the reliance in the report on internal controls.ExplanationChoice "b" is correct. If the auditor plans to rely on controls that have changed since they werelast tested, the auditor should test the operating effectiveness of such controls in the current audit.Choice "c" is incorrect. If the auditor plans to rely on controls that have changed since they werelast tested, the auditor should test the operating effectiveness of such controls in the current audit.
The auditor cannot document reliance on controls that have changed since they were last testedunless the auditor has tested the controls.Choice "a" is incorrect. If the auditor plans to rely on controls that have changed since they werelast tested, the auditor should test the operating effectiveness of such controls in the current audit.Inquiry alone does not provide sufficient evidence to form a conclusion regarding the operatingeffectiveness of controls.Choice "d" is incorrect. The auditor does not report reliance on specific controls in the report oninternal controls.Which of the following explanations best describes why an auditor may decide to reduce tests ofdetails for a particular audit objective?
Choice "a" is incorrect. Tests of details are more likely to be performed when a large number oftransactions were posted to an account during the period.

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