An auditor's determination of a lower level of control risk would most likely be associated with
A)Larger population sizes for tests of controls.
B)Larger samples for substantive procedures.
C)Smaller samples for substantive procedures.
D)Lower levels of detection risk.

Question

Quizplus · Accepted Answer

A lower level of control risk implies that the auditor believes the client's internal controls are effective, which allows for smaller samples for substantive procedures because there is less need to rely on substantive testing to gather evidence.

An Auditor's Determination of a Lower Level of Control Risk