Which illustrates risk of assessing control risk too high

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Problem 1: Which of the following best illustrates the risk of assessing control risk too high?

A. The sample selected to test controls does not support the auditor's planned assessed level of control risk but the true operating effectiveness of the control structure justifies such an assessment

B. The sample selected to test controls supports the auditor's planned assessed level of control risk but the true operating effectiveness of the control structure does not justify such an assessment

C. While performing a substantive test of details during an audit, the auditor determined that the sample results supported the conclusion that the recorded account balance was materially misstated. It was, in fact, not materially misstated.

D. While performing a substantive test of details during an audit, the auditor determined that the sample results supported the conclusion that the recorded account balance was not materially misstated. It was, in fact, materially misstated.

Reference no: EM132726356

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