The relationship between test controls and assessing control risk is that the planned test of controls is performed during fieldwork and should provide evidence of the proper and consistent application of a control policy or procedure throughout the entire year under audit. They are not ordinarily performed under the primarily substantive approach.
However such tests are performed when, based on the favorable results from concurrent tests of controls the auditor decides to switch from the primarily substantive to the lower assessed level of control risk approach, in this circumstance, the tests are sometimes called additional tests of control.
They are performed only when it is likely that additional evidence will be obtained to lower the initial assessment of control risk and it is cost-effective to do so.
These tests are also performed as part of an initial lower assessed level of control risk strategy for specific assertion and they are performed to support the initial planned assessed level of control risk of moderate or low and the corresponding planned level of substantive tests.
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