The auditor's assessment of control risk is a critical one because it affects the auditor's decisions about:
A) substantive tests of transactions.
B) tests of details of balances.
C) tests of controls.
D) all of the above

Question

Quizplus · Accepted Answer

The auditor's assessment of control risk affects their decisions about all three types of tests: substantive tests of transactions, tests of details of balances, and tests of controls. If the auditor assesses control risk as high, they may rely less on tests of controls and perform more substantive tests. If the auditor assesses control risk as low, they may rely more on tests of controls and perform fewer substantive tests. Therefore, the auditor's assessment of control risk is critical in determining the appropriate audit procedures to be performed.

The Auditor's Assessment of Control Risk Is a Critical One