Helen Lam assessed control risk to be low. What is the appropriate audit strategy she should adopt?
A) predominantly substantive audit approach
B) control testing strategy
C) combined audit strategy
D) substantive year end testing

Question

Quizplus · Accepted Answer

Since control risk is assessed as low, it means that the client's internal controls are effective and reliable, and therefore a predominantly substantive audit approach can be adopted. This approach involves a higher focus on substantive procedures than on testing of controls.

Helen Lam Assessed Control Risk to Be Low