After obtaining an understanding of the internal control system and assessing control risk, an auditor decided not to perform additional tests of controls.The auditor most likely concluded that the
A)Additional evidence to support a further reduction in control risk was not cost-beneficial.
B)Assessed level of inherent risk exceeded the assessed level of control risk.
C)Internal control system was properly designed and justifiably may be relied on.
D)Evidence obtainable through tests of controls would not support an increased level of control risk.

Question

Quizplus · Accepted Answer

The auditor likely concluded that performing additional tests of controls would not be cost-beneficial because the cost of obtaining further evidence would outweigh the benefits of potentially reducing control risk further.

After Obtaining an Understanding of the Internal Control System and Assessing