If the Auditor Initially Considers the Internal Control Environment Risky

question 37

Multiple Choice

If the auditor initially considers the internal control environment risky, but later during the audit concludes it to be adequate as a result of substantive procedures, the auditor:

• A) should reflect the new assessment in its report on ICFR.
• B) should increase substantive testing.
• C) should issue a new opinion on the financial statements.
• D) should issue a new opinion on the ICFR.

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Definitions:

Christmas Tree Lights

Decorative lights used to adorn Christmas trees, contributing to the festive ambiance of Christmas celebrations.

Pulsating Waves

Oscillating disturbances or movements that periodically increase and decrease in intensity, commonly used in the context of physics or physiology.

Retinal Images

Digital or photographic captures of the retina's condition, used for diagnosing and monitoring eye diseases.

Perceived

Regarded in a certain way; the interpretation or understanding of something.