Question

(Assessing control risk) An auditor is required to obtain asufficient understanding of each
of the components of an entity’s system of internal control to planthe audit of the entity’s
financial statements and to assess control risk for the assertionsembodied in the account
balance, transaction class, and disclosure components of thefinancial statements.

Required
a. Explain the reasons an auditor may assess control risk at themaximum level for one or
more assertions embodied in an account balance.
b. What must an auditor do to support assessing control risk atless than the maximum
level when the auditor has determined that controls have beenplaced in operation?
c. What should an auditor consider when seeking a further reductionin the planned
assessed level of control risk?
d. What are an auditor’s documentation requirements concerning anentity’s system of
internal control and the assessed level of control risk?

Please answer all questions please.