Assessing control risk at below the maximum level most likely would involve
A) Performing more extensive substantive tests with larger sample sizes than originally planned.
B) Reducing inherent risk for most of the assertions relevant to significant account balances.
C) Changing the timing of substantive tests by omitting interim-date testing and performing the tests at year-end.
D) Identifying specific internal control activities that are relevant to specific financial statement assertions.

Question

Quizplus · Accepted Answer

Assessing control risk at below the maximum level would involve identifying specific internal control activities that are relevant to specific financial statement assertions, rather than simply performing more extensive substantive tests, reducing inherent risk, or changing the timing of substantive tests. By identifying the specific internal control activities that are relevant to specific financial statement assertions, auditors can rely on those activities to help mitigate the risk of material misstatement to below the maximum level.

Assessing Control Risk at Below the Maximum Level Most Likely