The ultimate purpose of control risk assessment is to:
A)Estimate the overall risk of failing to detect material misstatements.
B)Decide the nature,timing,and extent of further audit procedures.
C)Determine the risk of incorrect acceptance.
D)Determine the probability that errors entered the accounts.

Question

Quizplus · Accepted Answer

The ultimate purpose of control risk assessment is to determine the nature, timing, and extent of further audit procedures. This is done to minimize the risk of failing to detect material misstatements and to ensure that the auditor can provide an appropriate level of assurance regarding the accuracy and completeness of the financial statements. Control risk assessment is a critical step in the audit process as it helps the auditor to identify areas of the financial statements that may be susceptible to material misstatements and to design procedures accordingly.

The Ultimate Purpose of Control Risk Assessment Is To