By assessing control risk as high,an auditor has determined that their client's system of internal controls:
A)Is very effective at preventing or detecting material misstatements.
B)Is very strong.
C)Will eliminate the possibility of material fraud or error.
D)Is unlikely to be effective in mitigating inherent risks identified.

Question

Quizplus · Accepted Answer

If an auditor determines that control risk is high, it means they believe the client's system of internal controls is unlikely to be effective in mitigating inherent risks that have been identified. This does not necessarily mean that the controls are nonexistent or weak, but rather that they may not be sufficient to prevent or detect material misstatements. Therefore, option D is the best choice.

By Assessing Control Risk as High,an Auditor Has Determined That