The ultimate purpose of control risk assessment is to
A) estimate the overall risk of failing to detect material misstatements.
B) decide the nature, timing, and extent of further audit procedures.
C) determine the risk of incorrect acceptance.
D) determine the probability that errors entered the accounts.

Question

Quizplus · Accepted Answer

The ultimate purpose of control risk assessment is to decide the nature, timing, and extent of further audit procedures based on the level of control risk identified. The other options are not the ultimate purpose of control risk assessment.

The Ultimate Purpose of Control Risk Assessment Is to