As control risk gets smaller,audit risk gets larger,assuming all other risks stay constant.

Name: As control risk gets smaller,audit risk gets larger,assuming all other risks stay constant.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Audit risk is a function of inherent risk, control risk, and detection risk. If control risk decreases (meaning controls are more effective), and all other risks stay constant, the overall audit risk would actually decrease, not increase, because there is less risk of material misstatement going undetected.

As Control Risk Gets Smaller,audit Risk Gets Larger,assuming All Other