When control risk is assessed at a minimum level,the auditor assumes that the internal controls are reliable in preventing or detecting material misstatements.

Question

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When control risk is assessed at a minimum level, the auditor believes that the internal controls are strong and reliable enough to prevent or detect material misstatements, and can therefore rely on them during the audit process. This means that the auditor can reduce the amount of testing they need to perform on transactions and account balances, saving time and resources. However, it's important to note that the auditor's assessment of control risk is not a guarantee that no misstatements exist, and they still need to perform substantive testing to provide reasonable assurance about the financial statements.

When Control Risk Is Assessed at a Minimum Level,the Auditor