An auditor's determination of a lower level of control risk would most likely be associated with
A) larger population sizes for tests of controls.
B) larger samples for substantive procedures.
C) smaller samples for substantive procedures.
D) lower levels of detection risk.

Question

Quizplus · Accepted Answer

A lower level of control risk implies that the auditor believes the internal controls are effective, reducing the need for extensive substantive testing, hence smaller samples for substantive procedures are needed.

An Auditor's Determination of a Lower Level of Control Risk