If the auditors do not perform tests of controls for certain assertions: A)They have performed a substandard audit. B)They are not required to communicate significant deficiencies relating to those accounts to management and the board of directors. C)They must issue a qualified opinion. D)They must assess control risk at the maximum level for those assertions.

Question

Quizplus · Accepted Answer

If auditors do not perform tests of controls for certain assertions, they must assess control risk at the maximum level for those assertions. This means that auditors cannot rely on the design and/or effectiveness of the related controls, and therefore they must assume that there is a higher risk of material misstatement. This would impact the nature, timing, and extent of their substantive testing procedures.

If the Auditors Do not Perform Tests of Controls for Certain