The risk of underreliance is the probability that the evidence in the sample indicates
A) Low control risk when the actual operating effectiveness of the control does not justify a low control risk assessment.
B) Low control risk when the actual operating effectiveness of the control would justify a low control risk assessment.
C) High control risk when the actual operating effectiveness of the control would justify a lower control risk assessment.
D) High control risk when the actual operating effectiveness of the control would justify a higher control risk assessment.

Question

Quizplus · Accepted Answer

The risk of underreliance occurs when the sample suggests a higher control risk than is actually warranted by the control's effectiveness, leading to unnecessary additional substantive testing.

The Risk of Underreliance Is the Probability That the Evidence