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.