If an auditor believes internal controls are completely ineffective to prevent or detect misstatements, the auditor should assess control risk as high, perhaps 100%.

Question

Quizplus · Accepted Answer

If the auditor believes that internal controls are completely ineffective, then control risk should be assessed as high, which means that there is a high risk that material misstatements may exist in the financial statements. In this case, the auditor may decide to perform more substantive procedures to detect and correct any misstatements.

If an Auditor Believes Internal Controls Are Completely Ineffective to Prevent