The relationship between risk and the extent of testing is
A)As the risk of material misstatement increases,the auditor increases the extent of an audit procedure
B)As the risk of material misstatement decreases,the auditor decreases the extent of substantive audit procedures and increases internal control testing
C)As the risk of material misstatement increases,the auditor decreases internal control testing and increases the extent of substantive audit procedures
D)The auditor may use computer-assisted audit techniques to test an entire population rather than take a sample as the risk of material misstatement increases
E)The auditor is required to use computer-assisted audit techniques to test an entire population rather than take a sample as the risk of material misstatement increases
F)both A and B
G)both A and D

Question

Quizplus · Accepted Answer

The relationship between risk and the extent of testing in auditing involves adjusting the audit approach based on the assessed risk of material misstatement. As the risk increases, auditors typically increase the extent of audit procedures (A) to gain more assurance. Additionally, using computer-assisted audit techniques (D) allows auditors to analyze entire populations, which can be particularly useful for high-risk areas by providing a more thorough examination than sampling would.

The Relationship Between Risk and the Extent of Testing Is