If tests of controls indicate that internal controls are not as effective as originally assessed, the auditor will
A) decrease assessment of control risk.
B) increase assessment of detection risk.
C) place less reliance on substantive procedures.
D) none of the above

Question

Quizplus · Accepted Answer

When tests of controls indicate that internal controls are not as effective as originally assessed, the auditor would likely increase the assessment of control risk, not decrease it, and place more reliance on substantive procedures, not less. Increasing detection risk is not a direct response to finding controls less effective; rather, the auditor would adjust the nature, timing, and extent of substantive procedures to compensate for the higher control risk.

If Tests of Controls Indicate That Internal Controls Are Not