After the auditor planned the audit based on the lower assessed level of control risk approach it was found that the tests of control did not support this approach. Although the controls were well designed they were not implemented and therefore ineffective. What audit strategy should the auditor now pursue?
A) adopt a predominantly substantive approach.
B) perform more extensive tests of control than originally planned.
C) reduce the level of substantive procedures.
D) none of the above.

Question

Quizplus · Accepted Answer

When tests of control do not support the initially assessed lower level of control risk because controls, although well-designed, were not effectively implemented, the auditor should shift to a predominantly substantive approach. This involves focusing more on direct testing of financial statement balances and transactions rather than relying on the effectiveness of internal controls.

After the Auditor Planned the Audit Based on the Lower