Choice "B" is correct. Inquiry alone generally will not support a conclusion for a lower assessed level of control risk.
Choices "c", "a", and "d" are incorrect, as the following are true:
c. | Observation by the auditor provides more assurance than audit evidence obtained by inquiry alone. |
a. | Prior audits may be considered by the auditor in assessing control risk in the current audit. |
d. | An audit of financial statements is a cumulative process. |
