You are the audit manager and you have been assigned to assess control risk and the effect on the audit plan for two scenarios. For each of the items below select which situations 1 OR 2 that is most accurate with the statement. In both situations 1 and 2 assume inherent risk is at a high level. Scenario #1: While obtaining an understanding of internal control, you have determined that it appears to be adequate - not strong, not weak. You choose to test controls in the area - they reveal that the system functions as expected. Scenario #2: While obtaining an understanding of internal control, you have determined that it appears to be very strong. You choose NOT to test controls in that area. The planned assessed level of control risk is lower for this situation. The planned allowable detection risk is lower for this situation. More tests of controls will be performed for this situation. A. Scenario #1 B. Scenario #2 More substantive procedures will be performed for this situation. The assessed level of control risk will be lower for this situation. + The risk of misstatement will be lower in this situation