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why would an auditor not test internal controls? brief short answer

why would an auditor not test internal controls?
brief short answer

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Answer #1

Testing of the internal controls is not considered when a particular account has a limited number of transactions directly influencing it. Many of the companies might not have too many transactions affecting their Goodwill account. Hence internal controls over Goodwill are mostly irrelevant.

The auditor will not perform the test of controls when the auditor feels the control risk is high because of inappropriate controls.

The auditor can also choose not to do the test of controls considering the cost/budget allocation.

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