Based on the results of attributes sampling,the audit team assessed control risk too low and did not modify the nature,timing,and extent of its further audit procedures to reduce detection risk.This situation would most likely result in a(n):
A)Higher level of audit risk than planned.
B)Lower level of inherent risk.
C)Greater efficiency loss.
D)Lower effectiveness loss.

Question

Quizplus · Accepted Answer

If the audit team assessed control risk too low and did not modify the nature, timing, and extent of further audit procedures, then they have not tested the controls sufficiently to reduce the risk of not detecting material misstatements. This would increase the risk of issuing an unqualified audit opinion when there are material misstatements present, resulting in a higher level of audit risk than planned.

Based on the Results of Attributes Sampling,the Audit Team Assessed