When the auditor identifies internal control strengths, ________.
A)inherent risk is increased
B)control risk is unaffected
C)control risk is decreased
D)there is no relationship between strength of internal control and inherent risk

Question

Quizplus · Accepted Answer

When the auditor identifies internal control strengths, it means there are effective controls in place to prevent or detect material misstatements in the financial statements. This reduces the likelihood of material misstatements occurring, hence reducing the control risk.

When the Auditor Identifies Internal Control Strengths, ________