When the assessment of inherent and control risk is low:
A) the level of substantive procedures is limited.
B) there are lots of controls that have been tested and found to be effective.
C) Both a and b
D) None of the above

Question

Quizplus · Accepted Answer

When inherent and control risks are assessed as low, it implies that the auditor has found effective controls in place (B), and as a result, the level of substantive procedures can be limited (A).

When the Assessment of Inherent and Control Risk Is Low