As the acceptable level of detection risk increases, an auditor may change the:
A)timing of substantive tests by performing them at an interim date rather than year end.
B)timing of the tests on controls by performing them throughout the year rather than at one time.
C)assess the level of inherent risk to a lower amount.
D)increase the sample size to achieve a more effective test.

Question

Quizplus · Accepted Answer

As the acceptable level of detection risk increases, the auditor may reduce substantive testing by performing them at an interim date rather than at year-end. This reduces the amount of substantive testing that needs to be done, making the audit process more efficient. However, it is important to note that this must be carefully planned, and the auditor must ensure that the interim testing is sufficient to provide the necessary level of assurance. The other options mentioned in the question would not be affected by an increase in detection risk.

As the Acceptable Level of Detection Risk Increases, an Auditor