The risk model is defined as AR = IR × CR × DR. The risk of assessing control risk too low can lead to ________.
A) the auditor performing more work than needed, thus wasting resources
B) the auditor failing to do additional work that should be done
C) poor choice of procedures
D) expanding sample sizes required for statistical sampling of account balances

Question

Quizplus · Accepted Answer

Assessing control risk too low means the auditor believes controls are more effective than they actually are, leading to a potential failure to detect material misstatements. This may lead to the auditor failing to do additional work that should be done, putting the audit at risk for not being completely reliable.

The Risk Model Is Defined as AR = IR ×