Question

Testing of internal controls is typically conducted _______.

1) during an interim period
2) at the balance sheet date
3) after the balance sheet date
4) upon issuance of the audit report

Answer 1

Testing of internal controls is typically conducted at the balance sheet date.

Step-by-step explanation:

Testing of internal controls is typically conducted at the balance sheet date. This allows auditors to assess the effectiveness of controls and their impact on financial statement balances.