If an auditor concludes that internal controls are likely to be effective, the preliminary assessment of control risk can be reduced, leading to which of the following impacts on the acceptable risk of incorrect acceptance?
A) reduction in
B) increase in
C) elimination of
D) increase or decrease

Question

Quizplus · Accepted Answer

If internal controls are deemed effective, the auditor can rely more on them, allowing for an increase in the acceptable risk of incorrect acceptance.

If an Auditor Concludes That Internal Controls Are Likely to Be