Extended performance of tests of controls is most likely when:
A) controls are ineffective and assessed control risk is high.
B) the auditor is doing a 'fraud audit'.
C) controls are effective and assessed control risk is low.
D) it is a first-year audit.

Question

Quizplus · Accepted Answer

Extended performance of tests of controls is most likely when controls are effective and assessed control risk is low, as this allows the auditor to rely more on the controls and reduce substantive testing.

Extended Performance of Tests of Controls Is Most Likely When