When controls are deemed ineffective and assessed control risk is at the maximum for a private company, there will be _ ________ emphasis placed on tests of controls.
A) heavy
B) moderate
C) no
D) relatively little

Question

Quizplus · Accepted Answer

When controls are deemed ineffective and assessed control risk is at the maximum, auditors will place no emphasis on tests of controls, as they would not rely on the controls to reduce the risk of material misstatement. Instead, they would focus on substantive procedures.

When Controls Are Deemed Ineffective and Assessed Control Risk Is