Ling is responsible for planning the audit over inventory and payroll cycles for a new client. Her supervisor gave her an internal control questionnaire for payroll, on which the supervisor had written the client's answers to several questions about internal controls. After reviewing the internal control questionnaire, Ling felt that the questions
asked were very thorough. Since the answers were all positive, indicating good internal controls, she recommended the internal control risk for payroll be assessed as low. Ling proceeded to design substantive procedures for payroll transactions. She also tested the controls over the client's payroll processing and inventory count procedures at year-end, just prior to the inventory count. Ling felt that she could not assess the control risks for the inventory count until she reviewed those procedures.
REQUIRED
State whether you agree with Ling's assessment of control risk and her plan of action. Justify your response.