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

Question

Quizplus · Accepted Answer

Assessing control risk at a level below high would involve identifying internal controls relevant to specific assertions and determining their effectiveness. This may lead to a reduction in the extent and nature of substantive testing, as the reliance on controls increases. Changing the timing of substantive tests, reducing inherent risk, or performing more extensive substantive tests would not necessarily be the best approach for assessing control risk at a lower level.

Assessing Control Risk at a Level Below High Most Likely