Assets are the most valuable item for a company. The company applies controls over assets for its safeguard and detection of assets frauds. The auditor also tests these controls to determine the nature and extent of the audit procedures applied for audit of assets. Audit risk is a risk that audit may provide an inappropriate opinion on the basis of his findings during the audit. There are some inherent risks and avoidable risk which result in an audit risk. To choose: The action of the auditor if the control risk is low.

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Chapter 14, Problem 14.20MCQ

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Assets are the most valuable item for a company. The company applies controls over assets for its safeguard and detection of assets frauds. The auditor also tests these controls to determine the nature and extent of the audit procedures applied for audit of assets.

Audit risk is a risk that audit may provide an inappropriate opinion on the basis of his findings during the audit. There are some inherent risks and avoidable risk which result in an audit risk.

To choose: The action of the auditor if the control risk is low.

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