When an auditor increases the planned assessed level of control risk because certain control activities were determined to be ineffective, the auditor would most likely increase the:
Suggested Answer:A🗳️
Choice "A" is correct. When an auditor increases the planned assessed level of control risk because certain control activities were determined to be ineffective, detection risk must be reduced accordingly. This may be accomplished by increasing the extent of tests of details. Choice "B" is incorrect. The level of inherent risk is not directly related to the planned level of control risk. Choice "C" is incorrect. The auditor performs tests of controls to evaluate the operating effectiveness of those controls. Once they have been determined to be ineffective, there would be no reason to perform further tests of those controls. Choice "D" is incorrect. The level of detection risk that the auditor could accept would decrease if the planned level of control risk increased.
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