When control risk is assessed at a maximum level,the auditor assumes that the internal controls are reliable in preventing or detecting material misstatements.

Question

Quizplus · Accepted Answer

When control risk is assessed at a maximum level, it means that the auditor believes that the internal controls are not effective in preventing or detecting material misstatements. Therefore, the auditor would have to rely more on substantive procedures to obtain assurance about the accuracy and completeness of the financial statements.

When Control Risk Is Assessed at a Maximum Level,the Auditor