Auditors may decide to perform some tests of controls or not perform any tests of controls, if inherent risk is assessed as ________.
A)moderate or low
B)high or moderate
C)unusually high
D)None of these options are correct.

Question

Quizplus · Accepted Answer

When inherent risk is assessed as moderate or low, auditors may decide not to perform tests of controls, relying instead on the assessment that the risk of material misstatement due to error or fraud is already low. This approach allows auditors to allocate their resources more efficiently.

Auditors May Decide to Perform Some Tests of Controls or Not