If no control deficiencies are identified,how will the extent of substantive testing required differ from a setting where deficiencies in internal control were identified?
A)The extent of testing will be more.
B)The extent of testing will be less.
C)The extent of testing will be the same in the two settings.
D)The extent of testing is not affected by control deficiencies.

Question

Quizplus · Accepted Answer

If no control deficiencies are identified, the auditor can rely on the internal controls and perform less extensive substantive testing. However, in a setting where control deficiencies are identified, the auditor cannot rely on the internal controls and must perform more extensive substantive testing to compensate for the lack of control reliance. Therefore, the extent of testing required will be less in a setting with no control deficiencies.

If No Control Deficiencies Are Identified,how Will the Extent of Substantive