All other factors held constant, if the auditor decreases audit risk then
A) there will be less documentation in the audit file.
B) total audit evidence and audit costs will increase.
C) it will also be necessary to decrease either control risk or inherent risk.
D) less supervision of the audit team will be required.

Question

Quizplus · Accepted Answer

If the auditor decreases audit risk, they will need to gather more audit evidence and increase the level of testing, which will increase audit costs. Decreasing control risk or inherent risk is not always required when decreasing audit risk. Less documentation and supervision are not linked to the changes in audit risk.

All Other Factors Held Constant, If the Auditor Decreases Audit