Question

What are the requirements under auditing standards for documenting the assessed level of control risk?

A) Auditors are not required to document the assessed level of control risk.

B) Documentation should include only narrative descriptions of control activities.

C) Documentation should be in the form of checklists, and no narrative descriptions are needed.

D) Documentation should support the assessed level of control risk and explain the basis for that assessment.

Answer 1

The requirements under auditing standards for documenting the assessed level of control risk include explaining the basis for the assessment and providing clear documentation to support it.

Step-by-step explanation:

The requirements under auditing standards for documenting the assessed level of control risk include documenting the assessed level of control risk and explaining the basis for that assessment. This documentation should support the assessed level of control risk and provide a clear understanding of how the assessment was made. It can be in the form of checklists, narrative descriptions, or a combination of both, as long as it effectively communicates the assessed level of control risk and its basis.