If internal controls are strong, _______.
A)the auditor can usually assess control risk as low
B)the auditor can usually assess control risk as high
C)the auditor does not need to test the controls
D)the auditor should allow the internal audit function to conduct any testing

Question

Quizplus · Accepted Answer

If internal controls are strong, it means that they are effective in preventing or detecting errors or fraud in the financial statements. This allows the auditor to have greater confidence in the financial statements, and therefore, assess control risk as low. Low control risk means that the auditor can rely on the internal controls to reduce substantive testing, which saves time and effort.

If Internal Controls Are Strong, _______