In obtaining evidence concerning the cash balance, the auditor performs the following procedures: Scan client-prepared bank reconciliations and verify the mathematical accuracy of the reconciliation. In this case, it is likely that:
A) detection risk is set at moderate to high.
B) detection risk is set at low to very low.
C) control risk is set at slightly below maximum to maximum.
D) control risk is set at moderate to high.
E) control risk is set at minimum to high.

Question

Quizplus · Accepted Answer

The procedure described is relatively simple and does not provide strong evidence by itself, suggesting that the auditor is willing to accept a higher detection risk, which means detection risk is set at moderate to high.

In Obtaining Evidence Concerning the Cash Balance, the Auditor Performs