On the basis of attributes sampling,an auditor decided to increase the assessed level of control risk from the level originally planned.To achieve an overall audit risk level that is substantially the same as the original planned level of audit risk,the auditor would:
A)Increase inherent risk.
B)Increase overall materiality levels.
C)Decrease substantive procedures.
D)Decrease detection risk.

Question

Quizplus · Accepted Answer

To achieve an overall audit risk level that is substantially the same as the original planned level of audit risk, the auditor would need to decrease detection risk. This is because detection risk is the only component of audit risk that the auditor can control directly. By decreasing detection risk, the auditor can increase the level of assurance provided by substantive procedures, and therefore compensate for the increased level of assessed control risk. Increasing inherent risk is not a viable option, as it would increase the level of audit risk overall. Increasing overall materiality levels or decreasing substantive procedures would also not be effective ways to compensate for the increased level of assessed control risk.

On the Basis of Attributes Sampling,an Auditor Decided to Increase