When Might an Auditor Decide NOT to Reduce Assessed Control

question 39

Multiple Choice

When might an auditor decide NOT to reduce assessed control risk even if internal controls are adequate?

• A) The cost of the study and tests of controls will exceed the savings from reduced substantive procedures.
• B) A qualified opinion will be issued.
• C) The auditor plans to rely on the controls and reduce substantive testing.
• D) all of the above

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Definitions:

Clarification

The process of making information clear and more comprehensible by removing ambiguities or providing additional details.

Audience Awareness

The understanding and consideration of the interests, preferences, and characteristics of the intended recipients or viewers of a communication or work.

Nervousness

A feeling of tension, worry, or unease, typically about an imminent event or something with an uncertain outcome.

Questions Invitation

An approach in communication or writing that encourages audiences or readers to engage by asking questions.