In most audits of large entities,control risk assessment contributes to audit efficiency,which means that
A) The cost of substantive procedures will exceed the cost of control evaluation work.
B) Auditors will be able to reduce the cost of substantive procedures by an amount more than the control evaluation costs.
C) The cost of control evaluation work will exceed the cost of substantive procedures.
D) Auditors will be able to reduce the cost of substantive procedures by an amount less than the cost of tests of controls.

Question

Quizplus · Accepted Answer

Control risk assessment allows auditors to assess the effectiveness of the entity's internal controls, which can help to reduce the extent of substantive procedures required. As a result, auditors can reduce the cost of substantive procedures by an amount greater than the cost of control evaluation work, leading to greater audit efficiency.

In Most Audits of Large Entities,control Risk Assessment Contributes to Audit