Under which circumstance is it likely that the extent of substantive procedures will be expanded beyond that anticipated in the audit plan?
A)The auditors have determined that controls have been implemented (placed in operation)but,in accordance with the audit plan,have performed no tests of controls.
B)Certain controls do not leave a trail of documentary evidence.
C)Deviation rates were greater than zero and approached anticipated levels.
D)The operating effectiveness of certain controls was found to be less than expected,although no material misstatements were identified.

Question

Quizplus · Accepted Answer

If the operating effectiveness of certain controls was found to be less than expected, even if no material misstatements were identified, the auditors may need to expand their substantive procedures to ensure that there are no undetected misstatements. This is because the effectiveness of controls impacts the level of reliance that can be placed on them, and if they are not effective, more substantive procedures may be needed.

Under Which Circumstance Is It Likely That the Extent of Substantive