When inherent risk and control risk are assessed to be low,the level of substantive procedures required to address any remaining detection risk is limited.

Question

Quizplus · Accepted Answer

This statement is true. When inherent risk and control risk are low, the remaining detection risk is also low, and therefore the level of substantive procedures required to address it is limited. This is because there is already a low risk of material misstatement, hence less testing is required.

When Inherent Risk and Control Risk Are Assessed to Be