When tests of controls reveal that controls are operating as anticipated,it is most likely that the assessed level of control risk will:
A)Be less than the preliminary assessed level of control risk.
B)Equal the preliminary assessed level of control risk.
C)Equal the actual control risk.
D)Be less than the actual control risk.

Question

Quizplus · Accepted Answer

When tests of controls reveal that controls are operating as anticipated, it means that the initial assessment of control risk was accurate. Therefore, the assessed level of control risk would equal the preliminary assessed level of control risk, as the tests confirmed the auditor's initial expectations.

When Tests of Controls Reveal That Controls Are Operating as Anticipated,it