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:

Democratic Leadership

A leadership style characterized by encouraging open communication and sharing decision-making among team members to guide direction.

Personal Interests

The hobbies, goals, or activities that an individual is passionate about or pursues for personal satisfaction.

Personalized Power

Power used for personal gain, often at the expense of others, contrasting with power used for the benefit of others.

Exchanging Valued

Refers to the process of giving and receiving goods, services, or ideas that hold significance or worth to the involved parties.