The risk of assessing control risk too low is
A)an error that will affect the efficiency of the audit
B)an error that will affect the effectiveness of the audit
C)an error that will affect the reliability of the audit
D)an error that will affect the relevance of the audit

Question

Quizplus · Accepted Answer

Assessing control risk too low means the auditor believes the controls in place are more effective than they actually are. This can lead to the auditor relying too heavily on those controls, potentially missing material misstatements. This error affects the effectiveness of the audit because it increases the risk of material misstatement going undetected.

The Risk of Assessing Control Risk Too Low Is