Which statement is false? a. Assessing control risk as high means the auditor does not have confidence that internal controls will prevent or detect material misstatements; assessing control risk as low has the opposite implication. b. If control risk is assessed as low, the auditor cannot plan on relying on the controls to increase substantive procedures for account balances. c. The auditor will not perform tests of controls; instead, the auditor must plan for substantive procedures, without relying on the client's internal controls. d. Based on obtaining an understanding through risk assessment procedures, the auditor assesses control risk ranging from high (weak controls) to low (strong controls).

b. If control risk is assessed as low, the auditor cannot plan on relying on the controls to increase substantive procedures for account balances

Explanation:

Control risk refers to the possibility of internal controls being unable to detect frauds or material misstatements.

An auditor assumes control risk as high unless enough sufficient appropriate evidence has been obtained suggesting it to be low.

High control risk increases the work of an auditor but a lower control risk does not relieve him of the test of controls. Irrespective of the level of control risk, an auditor shall perform some control procedures.

Substantive procedures are those procedures which are carried out to check transactions and account balances.

If control risks are assessed as low, this indicates client's internal controls are strong and effective and are more reliable. This would reduce the extent of nature, timing and extent of control procedures to be performed by the auditor.