What is a primary goal of performing tests of controls?

The primary goal of performing tests of controls is to evaluate the effectiveness of internal controls. This is crucial for auditors as they assess the design and operation of controls within an organization. By testing controls, auditors can determine whether those controls are working as intended to prevent or detect material misstatements in financial statements.

Internal controls are the processes and procedures put in place to ensure the integrity of financial and accounting information, promote accountability, and prevent fraud. If the internal controls are effective, auditors can place more reliance on them, which may reduce the extent of substantive testing needed in the audit process. The overall goal is to ensure that the controls are successful in mitigating risks, thereby enhancing the reliability of financial reporting.

In contrast, verifying the accuracy of financial statements, understanding the efficacy of operational controls, and determining the reliability of accounting estimates are important aspects of the audit process but do not specifically relate to the purpose of testing internal controls. These activities may be influenced by the findings from tests of controls but do not directly encompass their primary objective.