FIGURE Audit Assurance from Substantive Tests and Tests of Controls 12-7 at Different Levels of Internal Control Effectiveness Acceptable assurance Audit assurance from ntrol risk assessment and tests of controls Audit assurance from substantive tests No assurance C INTERNAL CONTROL EFFECTIVENESS Strong contre No reliance on controls not cost-effective Some reliance on controls C, Maximum reliance on controls Arens, Loebbecke; Auditing, 8/EArens, Loebbecke; Auditing, 8/E ©2000 Prentice Hall, Inc. FIGURE 12 - 7 Audit Assurance from Substantive Tests and Tests of Controls at Different Levels of Internal Control Effectiveness