Audit and Assurance Practice Exam

The correct answer is based on the understanding that auditors often need to reperformed controls regardless of previous effectiveness. The assertion that controls do not need to be reperformed unless evidence of ineffective procedures exists does not align with standard auditing practices. Auditors are required to evaluate the design and implementation of controls and to gather sufficient evidence to support the assessment of their operating effectiveness. This is particularly important in ensuring that the controls remain effective over time, as changes in the environment, processes, or personnel can lead to variations in control effectiveness.

Routine reperformance of controls aids auditors in verifying that the controls continue to function as intended and mitigates the risk of undetected errors or fraud. Moreover, even if there has been no prior evidence of issues, auditors take a conservative approach by periodically reperforming controls to maintain a high level of assurance regarding their effectiveness. Therefore, the assertion is misleading, making it clear why the statement is false. This understanding is critical for audit planning and risk assessment, reinforcing the necessity of continuous evaluation and testing of controls in the audit process.