What is the purpose of the preliminary assessment of control risk?
A)To obtain a reasonable expectation of controls so as to decide on an appropriate audit strategy.
B)To determine the extent to which internal controls have been implemented.
C)To obtain the necessary information for developing the flowchart.
D)To provide management with an opinion on the effectiveness of controls.

Question

Quizplus · Accepted Answer

The preliminary assessment of control risk is conducted to understand the effectiveness of an entity's internal controls, which helps auditors decide on the appropriate audit strategy and the nature, timing, and extent of further audit procedures.

What Is the Purpose of the Preliminary Assessment of Control