After identifying the risks of material misstatement, the auditor develops an audit...

70.2K

Verified Solution

Question

Accounting

After identifying the risks of material misstatement, the auditor develops an audit plan in response to those risks. Which of the following plans for testing revenue would be most likely if the auditor assesses control risk as high?
a. The only evidence the auditor plans to obtain is from tests of details.
b. The auditor plans to obtain 40% of the necessary audit evidence from tests of controls and the remaining 60% from substantive analytical procedures.
c. The auditor plans to obtain the majority of the necessary audit evidence from tests of controls.
d. Any of these plans would be an appropriate audit plan if the auditor believes that control risk is high.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students