Which of the following occurs when,based on sample results,control risk is assessed excessively high?
A)Audit inefficiency.
B)A less expensive audit.
C)Reduction of substantive testing.
D)Errors that are more likely to occur than anticipated.

Question

Quizplus · Accepted Answer

When control risk is assessed excessively high, the auditor believes there is a greater risk that the internal controls do not prevent or detect material misstatements. As a result, the auditor may perform more extensive testing than necessary, leading to audit inefficiency. This means more time and resources are used than would be if the control risk were assessed accurately.

Which of the Following Occurs When,based on Sample Results,control Risk