When planning an audit, the auditor's assessed level of control risk is:
A) an economic issue, trading off the costs of testing controls against the cost of testing balances.
B) calculated by using the formulas provided in ASA 315.
C) determined by using actuarial tables.
D) calculated by using the audit risk model.

Question

Quizplus · Accepted Answer

The auditor's assessed level of control risk is indeed an economic issue, as it involves balancing the costs of testing controls against the costs of substantive testing of balances. This assessment helps in determining the nature, timing, and extent of auditing procedures.

When Planning an Audit, the Auditor's Assessed Level of Control