Tests of details are designed based upon planned results of analytical review and planned results of tests of controls.Should the planned results differ materially from the actual results of analytical review and tests of controls,then
A)audit risk will be revised.
B)the planned audit program will require revision.
C)inherent risk will be revised.
D)tests of controls will not be considered for overall risk assessment processes.

Question

Quizplus · Accepted Answer

If the planned results of analytical review and tests of controls differ materially from the actual results, then the planned audit program will require revision. This ensures that the audit is done effectively and the risks are properly assessed, and that sufficient evidence is gathered to support the opinion given by the auditor. Adjustments to audit risk, inherent risk or exclusion of tests of controls from overall risk assessment processes are not automatic responses to deviations from planned results.

Tests of Details Are Designed Based Upon Planned Results of Analytical