Assessing control risk as less than high would most likely involve:
A) changing the timing of substantive tests by omitting interim testing and performing the tests at year-end.
B) identifying specific internal controls relevant to specific assertions.
C) performing more extensive substantive tests with larger sample sizes than originally planned.
D) reducing inherent risk for most of the assertions relevant to significant account balances.

Question

Quizplus · Accepted Answer

Identifying specific internal controls relevant to specific assertions can help assess control risk as less than high by providing evidence that the internal controls are operating effectively and can be relied upon to prevent or detect material misstatements. Changing the timing of substantive tests, performing more extensive substantive tests, or reducing inherent risk do not necessarily provide evidence regarding the effectiveness of internal controls.

Assessing Control Risk as Less Than High Would Most Likely