When Control Risk Is High, the Audit Strategy Is to

question 45

Multiple Choice

When control risk is high, the audit strategy is to

• A) do little or no tests of controls and increase reliance on substantive testing of transactions and account balances.
• B) assume the client's management is dishonest and immediately report them to the Canada Revenue Agency (CRA).
• C) increase reliance on tests of controls and reduce reliance on substantive testing of transactions and account balances.
• D) refuse to continue with the remainder of the audit due to the high risk of fraud.

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Definitions:

Anxiety

A mental health disorder characterized by feelings of worry, anxiety, or fear that are strong enough to interfere with one's daily activities.

Tooth Enamel

The hard, outer surface layer of a tooth that protects it from decay.

Gum Recession

A dental condition where the margin of the gum tissue surrounding the teeth wears away, exposing more of the tooth or the tooth's root.

Compulsion

A strong, usually irresistible impulse to perform an act, especially one that is irrational or contrary to one's will.