When tests of controls are not performed while obtaining an understanding under the predominantly substantive approach:
A)preliminary control risk must be assessed at below maximum.
B)preliminary control risk must be assessed at the minimum.
C)they must be performed at year-end.
D)preliminary control risk must be assessed at the maximum.

Question

Quizplus · Accepted Answer

When tests of controls are not performed, the auditor cannot rely on the effectiveness of the controls, so control risk is assessed at the maximum.

When Tests of Controls Are Not Performed While Obtaining an Understanding