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If auditors assess control risk at the maximum level, they will tend to: Multiple Choice perform...

If auditors assess control risk at the maximum level, they will tend to:

Multiple Choice

  • perform more audit procedures using internal evidence.

  • perform substantive tests at an interim date.

  • perform a great deal of additional tests of controls.

  • perform a great deal of substantive testing during the audit.

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Answer #1

perform a great deal of substantive testing during the audit.

Controm risk is the risk of material misstatements in the financial statements of an organization due to the failure of control systems used. In the Control risk is higher, auditor performs much of substantive testing during the audit. Substantive testing refers to the activities performed by auditor to gather and determine the misstatements in the financial statements.
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