If the control environment is assessed to be weak, _______.
A)the auditors should immediately consider withdrawal from the engagement
B)the auditors should address this by changing the audit plan to include more audit procedures and expanding the scope of the audit to include more of the client's locations
C)the auditors should plan to increase their reliance on the evidence generated by the system
D)the auditors should plan to increase their reliance on the internal audit function

Question

Quizplus · Accepted Answer

If the control environment is assessed to be weak, the auditors should address this by changing the audit plan to include more audit procedures and expanding the scope of the audit to include more of the client's locations. This is because a weak control environment increases the risk of material misstatements in the financial statements, and the auditors need to take additional steps to obtain sufficient and appropriate audit evidence to mitigate these risks. Options A, C, and D are not appropriate responses to a weak control environment on their own.

If the Control Environment Is Assessed to Be Weak, _______