After Performing Additional Tests of Controls, the Auditor Reassesses Control

question 26

Multiple Choice

After performing additional tests of controls, the auditor reassesses control risk from the initial planning level of slightly below maximum to moderate. The auditor should now:

• A) decrease the level of detection risk, and decrease substantive testing.
• B) increase the level of detection risk, and increase substantive testing.
• C) increase planned substantive testing.
• D) increase the level of detection risk, and decrease substantive testing.

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Definitions:

Method of Difference

A scientific research method used to identify the cause-effect relationship between variables by changing one variable at a time while keeping others constant.

Causal Factor

An element or condition that brings about or contributes to producing a particular outcome or effect.

Method of Concomitant Variations

A principle in scientific and philosophic reasoning that suggests a causal relationship between two variables if they vary together consistently.

Method of Concomitant Variations

A scientific method where one observes the changes in one variable alongside the changes in another, determining correlation.