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.

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Definitions:

Behavioural Inhibition

A temperament in early childhood that may be related to anxiety disorders later in life, characterized by profound avoidance of others in preschool, and atypical autonomic nervous system responses to novelty.

Anxiety Disorder

A mental health condition characterized by excessive fear or worry that interferes with daily activities.

Homotypic Continuity

An underlying (developmental) process or impairment may change, but the way it is manifested stays the same (e.g., the prediction of a disorder by the same disorder).

Incredible Years Parent Program

The Incredible Years Parent Program is a series of educational and supportive interventions aimed at improving parenting skills, strengthening parent-child interactions, and reducing children's behavior problems.