When controls are effective and assessed control risk is low:
A) there will be heavy emphasis on tests of controls.
B) some substantive tests of transactions will still be performed.
C) only substantive tests of transactions will be used.
D) both A and B

Question

Quizplus · Accepted Answer

When controls are effective and assessed control risk is low, the auditor will place less emphasis on tests of controls and more emphasis on substantive tests of transactions. However, some tests of controls will still be performed to ensure that the controls are operating effectively.

When Controls Are Effective and Assessed Control Risk Is Low