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When an Auditor Has Reduced Assessed Control Risk Based on Tests

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When an auditor has reduced assessed control risk based on tests of controls, he or she may then reduce the extent to which the accuracy of the financial statement information directly related to those controls must be supported through the accumulation of evidence using substantive tests.


Definitions:

High Concern

A state of being extremely attentive or anxious about something, especially issues of great importance or significant impact.

Democratic Leader

A leadership style characterized by the involvement of team members in decision-making processes, promoting equality, and encouraging participation and consensus.

Sharing Information

Sharing information involves the distribution or exchange of data, knowledge, or insights between individuals or groups to enhance understanding, efficiency, or collaboration.

Retaining Authority

Keeping decision-making power and control within a certain level of the organization or with specific individuals.

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