When planning the audit,the auditor's decision on the appropriate assessed level of control risk to use is
A)an economic issue,trading off the costs of testing controls against the cost of testing balances.
B)calculated by using the audit risk model.
C)calculated by using a standard formula.
D)determined by using actuarial tables.

Question

Quizplus · Accepted Answer

The appropriate assessed level of control risk is influenced by economic issues, as the auditor needs to weigh the costs of testing controls against the cost of testing balances. The audit risk model is used to determine the overall audit risk and set the planned level of detection risk, but it does not directly determine the level of control risk. There is no standard formula or actuarial tables for determining the appropriate assessed level of control risk, as it is a judgment-based decision.

When Planning the Audit,the Auditor's Decision on the Appropriate Assessed