Based on her review, Joyce Yu found both inherent risk and control risk at a major research facility to be high. One would expect that her amount of substantive testing required would be:
A) high.
B) low.
C) medium.
D) impossible to determine without more data.

Question

Quizplus · Accepted Answer

When inherent risk and control risk are high, it indicates a greater likelihood of material misstatements in the financial statements. This means that more substantive testing will be required to ensure the accuracy and completeness of the financial statements. Therefore, the amount of substantive testing required would be high.

Based on Her Review, Joyce Yu Found Both Inherent Risk