The Audit Strategy for a Client with High Inherent Risk

question 50

Multiple Choice

The audit strategy for a client with high inherent risk and high control risk will include

• A) no or very limited tests of controls.
• B) decreased reliance on substantive tests.
• C) increased testing of controls.
• D) increased reliance on controls.

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Definitions:

Assertive

The quality of being self-assured and confident without being aggressive, enabling clear and effective communication.

Directive

An authoritative instruction or guideline that directs the way tasks or operations should be carried out.

Transformational Leader

An individual who inspires and motivates followers to exceed their own self-interests for the good of the organization, promoting significant changes and transformations.

Integrity and Honesty

The quality of being honest and having strong moral principles that one refuses to violate.