Deciding that internal controls are effective when they in fact they are not is an example of assessing control risk too high.

Question

Quizplus · Accepted Answer

Assessing control risk too high means that the auditors believe that the risk of material misstatement is higher than it actually is. Deciding that internal controls are effective when they are not would result in the auditors assessing control risk too low, which means they believe the risk of material misstatement is lower than it actually is.

Deciding That Internal Controls Are Effective When They in Fact