Which of the following statements relating to tests of controls is most correct?

1. Before conducting tests of controls on a control activity, the auditor will already have formed a view as to the likelihood that the control being tested will be found to be operating effectively over the intended period of reliance.
2. Effective performance of planned tests of controls is less critical in reducing audit risk than effective performance of planned substantive tests.

Required: Answer in the space below:

i. Which of the two options (A or B) is correct.

it. Why the response selected is correct.

iii. Why the response not selected is incorrect.