The auditor's preliminary assessment of control risk is based on an understanding of the control system as it has operated in the past and is designed to operate.

Question

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The auditor's preliminary assessment of control risk is based on an understanding of the control system as it has operated in the past and is designed to operate. This assessment is necessary for the auditor to plan the audit and determine the nature, timing, and extent of audit procedures that need to be performed. However, this preliminary assessment may change based on further testing and evaluation of the control system during the audit.

The Auditor's Preliminary Assessment of Control Risk Is Based on an Understanding