When the assessment of inherent and control risk is low:
A) the level of substantive procedures is limited.
B) there are lots of controls that have been tested and found to be effective.
C) both a and b.
D) none of the above.

Question

Quizplus · Accepted Answer

When inherent and control risks are assessed as low, it implies that the auditor has found effective controls in place, thus reducing the need for extensive substantive procedures.

When the Assessment of Inherent and Control Risk Is Low