Which of the Following Statements About Performing Tests of Controls

Multiple Choice

Which of the following statements about performing tests of controls to support a lower level of control risk is not true?

A) Observation by the auditor provides more assurance than inquiry alone.
B) Inquiry alone generally will support a conclusion for a lower assessed level of control risk.
C) Prior audits may be considered by the auditor in assessing control risk in the current audit.
D) An audit of financial statements is a cumulative process.