Assume the Preliminary Audit Strategy Was Based on a Planned

question 57

Multiple Choice

Assume the preliminary audit strategy was based on a planned assessed level of control risk at a low level. Based on the final assessed level of control risk, the auditor would need to move substantive tests from interim to year-end and increase the extent of tests of details in order to accommodate a lower acceptable level of detection risk if:

• A) the final assessed level of control risk was moderate or high.
• B) the final assessed level of control risk was low or very low.
• C) the final assessed level of inherent risk was high or very high.
• D) the final assessed level of inherent risk was low or very low.
• E) the final assessed level of analytical procedures risk was moderate of high.

---

Definitions:

Retained Mucus

Mucus that remains in the respiratory tract due to ineffective clearance, potentially leading to breathing difficulties or infection.

Salaried Employee

An employee who is paid a fixed amount of money or compensation periodically, often annually or monthly, regardless of the number of hours worked.

Tax Return

A formal statement of income filed with a tax authority to calculate and pay taxes owed.

Correlation Coefficient

A statistical measure that calculates the strength and direction of a linear relationship between two variables.