When the lower assessed level of control risk approach is used, the final assessment of control risk is made after completing:
A) the procedures to obtain an understanding.
B) the documentation of the understanding.
C) all the planned tests of controls.
D) all the above.

Question

Quizplus · Accepted Answer

The final assessment of control risk when using the lower assessed level of control risk approach is made after completing all the steps listed: obtaining an understanding of the entity's internal control, documenting this understanding, and performing all the planned tests of controls. These steps are necessary to accurately assess the effectiveness of the entity's internal controls and thus determine the appropriate level of control risk.

When the Lower Assessed Level of Control Risk Approach Is