Question

If the auditor intends to assess control risk at a low level, _______.

A. he or she performs more testing than if he or she is planning to obtain only limited assurance from tests of controls
B. he or she performs less testing than if he or she is planning to obtain only limited assurance from tests of controls
C. he or she performs the same amount of testing if he or she is planning to obtain only limited assurance from tests of controls
D. he or she performs more testing than if he or she is planning to obtain unlimited assurance from tests of controls

Answer 1

If the auditor intends to assess control risk at a low level, they perform more testing than if they plan to obtain limited assurance from tests of controls.

Step-by-step explanation:

If the auditor intends to assess control risk at a low level, the answer is A. he or she performs more testing than if he or she is planning to obtain only limited assurance from tests of controls. When the auditor plans to assess control risk at a low level, it means they have confidence in the effectiveness of the client's internal controls. In order to support this assessment, the auditor needs to perform more extensive testing of the controls to gather sufficient evidence. This helps the auditor gain a higher level of assurance regarding the reliability of the client's internal controls.