The risk of concluding control risk is lower than it actually is, is also known as:
A) risk of overreliance.
B) risk of underreliance.
C) risk of incorrect acceptance.
D) risk of incorrect rejection.

Question

Quizplus · Accepted Answer

The risk of concluding control risk is lower than it actually is refers to the risk of overreliance. This means the auditor believes the controls are more effective than they actually are, potentially leading to less substantive testing than necessary.

The Risk of Concluding Control Risk Is Lower Than It