If control risk is assessed at the maximum, only this conclusion needs to be documented and not the basis for the assessment.

Question

Quizplus · Accepted Answer

When control risk is assessed at the maximum, it means that the auditor believes that the controls are not effective in preventing or detecting material misstatements. In this case, the auditor only needs to document this conclusion and not the basis for the assessment. This is because the basis for the assessment is not relevant when the control risk is assessed at the maximum.

If Control Risk Is Assessed at the Maximum, Only This