Why is the auditor more concerned with the risk of assessing control risk too lo

Question

Why is the auditor more concerned with the risk of assessing control risk too low rather than the risk of assessing control risk too high?

The risk of assessing control risk too high is not a type of sampling risk.

The risk of assessing control risk too low exposes the auditor to an efficiency loss.

The risk of assessing control risk too low may result in the auditor failing to perform sufficient substantive procedures.

The risk of assessing control risk too low cannot be measured by the auditor during the sampling process.

Explanation / Answer

c) The risk of assessing control risk too low may result in the auditor failing to perform sufficient substantive procedures.

The risk of assessing control risk too low and the risk of incorrect acceptance are concerned with the effectiveness of audit tests. if the audit test fails it would result in risk of assessing control risk too low.This means the substantive procedure performed had failed tm get a true picture.

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