An auditor tested a client's controls at an interim date and concluded that they were operating effectively. To support this conclusion for the entire audit period, the auditor should perform additional tests of controls for the remaining period. Which of the following factors would most likely lead the auditor to extend the testing of controls for the remaining period?
- The control is an automated control that has not changed since the interim testing.
- The auditor obtained a new management representation letter at year-end.
- The results of substantive procedures performed at year-end were consistent with expectations.
- Significant changes were made to the control environment during the remaining period. (correct answer)
Explanation: The correct answer is D. If significant changes occurred in the control environment, IT systems, or specific control procedures during the period after interim testing, the auditor cannot rely on the interim test results and must perform additional tests. Choice A would decrease the need for extensive roll-forward testing. Choice B, a management representation letter, does not provide evidence about control effectiveness. Choice C is a result of the overall audit process and does not directly inform the need to extend tests of controls.