While Performing a Substantive Test of Details During an Audit

question 56

Multiple Choice

While performing a substantive test of details during an audit, the auditor determined that the sample results supported the conclusion that the recorded account balance was materially misstated. Which of the following is the least likely auditor reaction to this discovery?

• A) perform expanded audit tests in the relevant areas
• B) increase detection risk in the relevant areas
• C) increase the sample size
• D) take no action until tests of other audit areas are completed

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Definitions:

Clarifying Values

The process of identifying and understanding one's personal values and beliefs to guide behavior and decision-making.

Reducing Workload

The process of decreasing the amount of work assigned to an individual or team, often aimed at improving balance and reducing stress.

Tipping Point

A tipping point is a critical juncture in time when a small influence or change triggers a significant impact, leading to a large-scale transformation.

Diffusion of Innovation

A theory that explains how, why, and at what rate new ideas and technology spread through cultures or social structures.