If the auditor decides to go for a lower assessed control risk, more extensive tests of controls are applied.

Question

Quizplus · Accepted Answer

When the auditor decides to decrease the assessed control risk, they are relying more on the effectiveness of the client's internal controls. To support this assessment, more extensive testing of controls is needed. This is because the lower the assessed control risk, the greater the reliance that can be placed on internal controls. Therefore, the auditor must test more of the client's internal controls to ensure their effectiveness.

If the Auditor Decides to Go for a Lower Assessed