What is the risk of assessing control risk too low?

A Over-auditing

B The auditor may rely on controls that are not operating effectively, reducing substantive testing inappropriately

C Higher fees

D No risk

✓ Correct Answer: Option B

If control risk is assessed too low, insufficient substantive testing may miss material misstatements—a risk of under-auditing.

💡 Why is B) the correct answer?

The correct answer to the question "What is the risk of assessing control risk too low?" is Option B: The auditor may rely on controls that are not operating effectively, reducing substantive testing inappropriately.

The other options — A) Over-auditing, C) Higher fees, D) No risk — are incorrect for this CPA Exam Prep question. As explained above: If control risk is assessed too low, insufficient substantive testing may miss material misstatements—a risk of under-auditing.

📚 About This CPA Exam Prep Practice Question

This 3-level CPA Exam Prep question from the Auditing & Attestation (AUD) topic is part of BrainForge Quiz's free exam preparation library. Each question includes the correct answer and a detailed explanation to help you understand the underlying concept, not just memorize the answer.

How to use this page: Read the question above, consider all four options (A through D), then check the highlighted correct answer and explanation. For active timed practice, start a free CPA Exam Prep practice test or use flashcards for spaced repetition review.

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What is the risk of assessing control risk too low?

✓ Correct Answer: Option B

📚 About This CPA Exam Prep Practice Question

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