Assessing control risk at below the maximum level most likely would involve:
A)performing more extensive substantive tests with larger sample sizes than originally planned.
B)reducing inherent risk for most of the assertions relevant to significant account balances.
C)changing the timing of substantive tests by omitting interim-date testing and performing the tests at year end.
D)identifying specific internal control activities that are relevant to specific financial statement assertions.

Question

Quizplus · Accepted Answer

Assessing control risk below the maximum level involves identifying specific internal control activities that are relevant to specific financial statement assertions. This allows auditors to rely on those controls and perform fewer substantive tests with smaller sample sizes. Reducing inherent risk or changing the timing of substantive tests are not necessarily related to assessing control risk at a lower level.

Assessing Control Risk at Below the Maximum Level Most Likely