Which of the following situations is not a reason to assess control risk as high?
A)Internal control policies or procedures are unlikely to be effective.
B)Evaluating the effectiveness of the internal control policies or procedures would be more time consuming than another audit approach.
C)The auditor has assessed detection risk as high.
D)Internal control policies or procedures are unlikely to pertain to an assertion.

Question

Quizplus · Accepted Answer

Control risk is assessed as high due to factors related to the effectiveness and relevance of internal control policies or procedures, not because of the auditor's assessment of detection risk. Detection risk pertains to the risk that the auditor will not detect a material misstatement, which is a separate component of audit risk.

Which of the Following Situations Is Not a Reason to Assess