The Auditor May Decide NOT to Reduce Assessed Control Risk

Multiple Choice

The auditor may decide NOT to reduce assessed control risk even if internal controls are adequate. This approach is followed if:

A) the cost of the study and tests of controls will exceed the savings from reduced substantive procedures.
B) the auditor plans to rely on the controls and reduce substantive testing.
C) a qualified opinion will be issued.
D) All of the above are true.