If controls are weak, _______.
A)auditors will perform less substantive testing as a result
B)auditors will increase the control risk assessment and perform additional substantive tests to detect material misstatements
C)auditors will decrease the control risk assessment and perform additional substantive tests to detect material misstatements
D)auditors will increase the control risk assessment and perform fewer substantive tests to detect material misstatements

Question

Quizplus · Accepted Answer

Weak controls increase the risk that material misstatements may occur, so auditors will increase the control risk assessment and perform additional substantive tests to detect any material misstatements that may have occurred. This approach allows auditors to obtain sufficient evidence to form a conclusion on the financial statements despite the weak controls.

If Controls Are Weak, _______