Lower levels of control risk are typically associated with lower levels of the risk of overreliance.

Question

Quizplus · Accepted Answer

Lower levels of control risk mean that there is a higher degree of effectiveness in the internal control system, which reduces the likelihood of material misstatements in the financial statements. This, in turn, lowers the risk of overreliance on the financial statements by auditors and other users. Therefore, the statement is true.

Lower Levels of Control Risk Are Typically Associated with Lower