Which of the following statements concerning control risk is correct?
A) Assessing control risk and obtaining an understanding of an entity's internal controls may be performed concurrently.
B) When control risk is at the maximum level, an auditor is required to document the basis for that assessment.
C) Control risk may be assessed sufficiently low to eliminate substantive procedure for significant transaction classes.
D) When assessing control risk, an auditor should not consider evidence obtained in prior audits about the operation of control activities.

Question

Quizplus · Accepted Answer

Assessing control risk and obtaining an understanding of an entity's internal controls can be performed concurrently as part of the audit process to evaluate the effectiveness of internal controls.

Which of the Following Statements Concerning Control Risk Is Correct