The risk of assessing control risk too high is the risk that the evidence of compliance with control procedures in the sample indicates ________.
A)low control risk when the actual degree of compliance does not justify a low control risk assessment
B)low control risk when the actual degree of compliance justifies a low control risk assessment
C)high control risk when the actual degree of compliance would justify a lower control risk assessment
D)high control risk when the actual degree of compliance would justify a higher control risk assessment

Question

Quizplus · Accepted Answer

Assessing control risk too high means the auditor believes the internal controls are less effective than they actually are, leading to unnecessary additional testing. Option C correctly describes this scenario, where the evidence suggests a higher control risk than warranted by the actual compliance level.

The Risk of Assessing Control Risk Too High Is the Risk