After obtaining an understanding of internal control and assessing control risk of an entity, an auditor decided not to perform tests of controls.The auditor most likely decided that:
A)a combination of limited tests of controls with analytical procedures would be more efficient and effective than detailed substantive testing.
B)the assessed level of detection risk exceeded the assessed level of control risk.
C)control risk should be assessed as low for key financial report assertions.
D)the evidence that could be obtained through tests of controls would not support an assessment of control risk as less than high.

Question

Quizplus · Accepted Answer

The auditor likely concluded that the evidence obtainable from tests of controls would not be sufficient to justify assessing control risk as anything lower than high, indicating a reliance on substantive testing instead.

After Obtaining an Understanding of Internal Control and Assessing Control