Assume the following two cases related to internal control. Assume inherent risk is at a high level in both cases.

Case A: While obtaining an understanding of internal control, you have determined that it appears to be very strong. You choose not to test controls in the area.

Case B: While obtaining an understanding of internal control, you have determined that it appears to be adequatenot strong, not weak. You choose to test controls in the area and the tests reveal that the controls function as expected.

Indicate which case is more accurately reflected by each statement below.

- A. B.	The planned assessed level of control risk is lower for this situation.
- A. B.	The acceptable detection risk is lower for this situation.
- A. B.	More substantive procedures will be performed for this situation.
- A. B.	The assessed level of control risk will be lower for this situation.
- A. B.	The risk of material misstatement will be lower in this situation.

A.	Case A
B.	Case B