The likelihood of assessing control risk too high is the risk that the sample selected to test controls
- Does not support the auditor’s planned assessed level of control risk when the true operating effectiveness of the control structure justifies such an assessment.
- Contains misstatements that could be material to the financial statements when aggregated with misstatements in other account balances or transactions classes.
- Contains proportionately fewer monetary errors or deviations from prescribed controls than exist in the balance or class as a whole.
- Does not support the tolerable error for some or all of management’s assertions.