After obtaining an understanding of the internal control system and assessing control risk,an auditor decided not to perform additional tests of controls.The auditor most likely concluded that ________.
A)the additional evidence to support a further reduction in control risk was not cost-beneficial
B)the assessed level of inherent risk exceeded the assessed level of control risk
C)the internal control system was properly designed and justifiably may be relied on
D)the evidence obtainable through tests of controls would not support an increased level of control risk

Question

Quizplus · Accepted Answer

The auditor likely concluded that the cost of obtaining additional evidence to further reduce control risk would not be justified by the benefits, indicating a cost-benefit decision rather than a judgment about the effectiveness of the internal control system itself.

After Obtaining an Understanding of the Internal Control System and Assessing