After Obtaining an Understanding of Internal Control and Performing Risk

Multiple Choice

After obtaining an understanding of internal control and performing risk assessment procedures, an auditor decided not to perform tests of controls. The auditor most likely concluded that the:

A) Additional evidence to support a reduction in control risk was not cost-beneficial to obtain.
B) Assessed level of inherent risk exceeded the assessed level of control risk.
C) Internal control was properly designed and justifiably may be relied on.
D) Evidence obtainable through tests of controls would not support an increased level of control risk.