If tests of controls support the control risk assessment, then ________ in the audit risk model is increased.
A) planned detection risk
B) planned inherent risk
C) planned fraud risk
D) planned assurance risk

Question

Quizplus · Accepted Answer

If tests of controls support the control risk assessment, it means there is reasonable assurance that the control is operating effectively, therefore the planned detection risk can be increased. This is because the lower the planned detection risk, the greater the extent of substantive procedures necessary to detect material misstatements.

If Tests of Controls Support the Control Risk Assessment, Then