When Control Risk Is High the Audit Strategy Is To

question 59

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 ASIC
• 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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