Economics · Internal Controls Testing

If internal controls testing during an interim audit indicates that the control environment is operating effectively, which of the following factors must be taken into account when determining the extent of additional work needed on internal controls at the final audit stage? 1. The significance of the assessed risks of material misstatement at the assertion level. 2. The specific controls tested during the interim period, and significant changes to them since testing. 3. The length of the remaining period until the financial year-end.