In assessing control risk, the auditor is basically concerned that the system provides reasonable assurance that:
A)controls have not been circumvented by collusion.
B)misstatements have been prevented or detected.
C)operational efficiency has been achieved in accordance with management plans.
D)management cannot override the system.

Question

Quizplus · Accepted Answer

When assessing control risk, the auditor is concerned with the effectiveness of the system's internal control in preventing, detecting, and correcting material misstatements in the financial statements. The other options, such as collusion, operational efficiency, and management override, may also be risks that need to be evaluated, but they are not the primary focus of control risk assessment.

In Assessing Control Risk, the Auditor Is Basically Concerned That