On the basis of audit evidence gathered and evaluated,an auditor decides to increase the assessed level of control risk from that originally planned.To achieve an overall audit risk level that is substantially the same as the planned audit risk level,the auditor would
A)decrease substantive testing.
B)decrease detection testing.
C)increase inherent risk.
D)increase materiality.

Question

Quizplus · Accepted Answer

When an auditor increases the assessed level of control risk, it means they have found that the controls are less effective than initially thought. To compensate for this and maintain the same level of overall audit risk, the auditor would need to increase detection efforts, not decrease them. However, since none of the options directly suggest increasing detection efforts, the closest action an auditor can take is to not decrease detection testing (which is not explicitly mentioned as an option). The provided options do not accurately reflect the standard audit response to an increased control risk, which typically involves either increasing substantive testing or decreasing materiality thresholds to enhance the detection of misstatements. Therefore, the explanation is based on the standard approach to audit risk management, which involves adjusting the nature, timing, and extent of audit procedures to respond to assessed risks.

On the Basis of Audit Evidence Gathered and Evaluated,an Auditor