Assessing control risk at a lower level most likely would involve:
A)changing the timing of substantive procedures by omitting interim testing and performing the tests at year-end.
B)identifying specific internal controls relevant to specific assertions.
C)performing more extensive substantive procedures with larger sample sizes than originally planned.
D)reducing inherent risk for most of the assertions relevant to significant account balances.

Question

Quizplus · Accepted Answer

Assessing control risk at a lower level involves identifying specific internal controls relevant to specific assertions. This allows the auditor to rely on those controls and perform less substantive procedures. Changing the timing of substantive procedures (A) and performing more extensive substantive procedures (C) would increase the level of detection risk rather than reducing control risk. Reducing inherent risk (D) would not be related to assessing control risk at a lower level.

Assessing Control Risk at a Lower Level Most Likely Would