When controls are deemed ineffective and assessed control risk is at the maximum for a private company, which of the following would normally be true?
A)No emphasis is placed on the controls.
B)Relatively little emphasis is placed on the controls.
C)Moderate emphasis is placed on the controls.
D)Heavy emphasis is placed on the controls.

Question

Quizplus · Accepted Answer

When controls are ineffective and control risk is at its maximum, auditors place no emphasis on controls and instead rely more on substantive testing to gather evidence.

When Controls Are Deemed Ineffective and Assessed Control Risk Is