When control risk is assessed at less than high for all financial statements assertions, an auditor should document the auditor’s ABCD· Understanding of the entity’s internal control structureYesYesNoYes· Conclusion that control risk is less than highNoYesYesYes· Basis for the conclusion that control risk is less than highYesYesNoNoa. Db. Bc. Cd. A • When control risk is assessed at less than high for all financialstatements assertions, an auditor should document the auditor'sA BDUnderstanding of the entity'sYesYesNoYesinternal control structureConclusion that control risk is lessNoYesYesYesthan highBasis for the conclusion that controlYesYesNoNorisk is less than high

Control Risk: Control risk is the risk that a misrepresentation due to mistake or fraud that might…

Answered: When control risk is assessed at less…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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When control risk is assessed at less than high for all financial statements assertions, an auditor should document the auditor’s

	A	B	C	D
· Understanding of the entity’s internal control structure	Yes	Yes	No	Yes
· Conclusion that control risk is less than high	No	Yes	Yes	Yes
· Basis for the conclusion that control risk is less than high	Yes	Yes	No	No

a. D

b. B

c. C

d. A

• When control risk is assessed at less than high for all financial
statements assertions, an auditor should document the auditor's
A B
D
Understanding of the entity's
Yes
Yes
No
Yes
internal control structure
Conclusion that control risk is less
No
Yes
Yes
Yes
than high
Basis for the conclusion that control
Yes
Yes
No
No
risk is less than high

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