Generally accepted auditing standards require the auditor to obtain sufficient appropriate audit evidence to reduce audit risk to an acceptable level.If the auditor determines that he cannot comply with this standard due to the risk level present in the client before the engagement,he will
A)reject the engagement.
B)advise the client on how to reduce the risk level.
C)increase substantive testing to reduce the risk to an acceptable level.
D)increase control testing to reduce the risk to an acceptable level.

Question

Quizplus · Accepted Answer

The auditor cannot compromise on the principle of obtaining sufficient appropriate audit evidence to reduce audit risk to an acceptable level. If the auditor determines that he cannot comply with this standard due to the risk level present in the client before the engagement, rejecting the engagement is the only option to maintain independence and professional integrity. Advising the client to reduce the risk level or increasing the testing cannot compensate for the lack of sufficient appropriate audit evidence.

Generally Accepted Auditing Standards Require the Auditor to Obtain Sufficient