If the auditor's assessment of the materiality of the account balance is high,what would be the respective effect on (1)the extent of substantive testing and (2)the nature of procedures performed?
A)(1)Less (2)More rigorous
B)(1)Less (2)Less rigorous.
C)(1)More (2)Less rigorous
D)(1)More (2)More rigorous

Question

Quizplus · Accepted Answer

When the auditor's assessment of materiality of the account balance is high, it implies that significant errors or misstatements in the balance could potentially affect the decisions made by the users of the financial statements. Therefore, the auditor would need to increase the extent of substantive testing in order to obtain reasonable assurance that the account balance is fairly presented. This means that more extensive testing procedures would need to be performed, such as selecting a larger sample size or testing more complex transactions. Additionally, the nature of the procedures performed would also need to be more rigorous, such as performing analytical procedures, external confirmations, and testing for fraud. Therefore, choice D is the correct answer.

If the Auditor's Assessment of the Materiality of the Account