At Every Audit Engagement the Auditor Is Required to Consider

question 91

Multiple Choice

At every audit engagement the auditor is required to consider that there could be significant risks of misstatement for revenue recognition.At ABC Ltd. ,the auditor has concluded that,yes,there are material risks of misstatement associated with revenue recognition.How does this affect the extent of testing for accounts receivable?

• A)Audit risk will be increased.
• B)Inherent risks will be decreased.
• C)Decreased control testing is required.
• D)Increased substantive testing is required.