When the audit team increases the planned assessed level of control risk because certain control activities...

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When the audit team increases the planned assessed level of control risk because certain control activities...

When the audit team increases the planned assessed level of control risk because certain control activities were determined to be ineffective, the audit team would most likely increase the:

Multiple Choice

extent of tests of controls.
level of detection risk.
level of inherent risk.
extent of substantive tests of details.

business accounting

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Answer 1

Answer #1

Option D (extent of substantive tests of details)

Control risk refers to the chances of any material misstatements in the financial statements of the company. In the case of higher probability of control risk, audit team is most likely to increase the extent of substantive tests of details

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Answer 2

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When the audit team increases the planned assessed level of control risk because certain control activities...

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