The Acceptable Risk of Overreliance

question 112

Multiple Choice

The acceptable risk of overreliance

• A) is normally assessed at a high level when auditing an accelerated filer public company.
• B) and the extent of tests of controls depend on assessed control risk for accelerated filer public companies.
• C) and the control risk will be assessed as low for audits where there is extensive reliance on internal controls.
• D) does not impact the effectiveness of the audit.

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