CPA Study Group
The question asks likely situation where INCREASED extent of tests are performed. More testing is done when controls appear ineffective....not when they appear effective. When things are good, you don't do more work. When things appear bad, you have to do less work?
The question is referring to test of controls, not substantive testing. An auditor would perform more extensive tests of controls in an attempt to reduce preliminary control risk for controls that are expected to result in low risk. This is so that they can do less substantive testing after. Basically, they expect the benefits of less substantive testing to outweigh the cost of performing additional tests of controls. You would perform more substantive testing when control risk is assessed at a higher level or at the maximum level (without performing tests of controls).