The level of substantive procedures will be limited when:
A)the inherent and control risk assessment is high.
B)the inherent and control risk assessment is low.
C)there are no controls tested or relied upon.
D)the client requests the auditor to perform limited procedures.

Question

Quizplus · Accepted Answer

When the inherent and control risk assessment is low, there is a lower risk of material misstatements, and thus, the level of substantive procedures can be limited. This is because when the risk is low, the auditor can rely on the controls more, allowing them to perform fewer substantive procedures.

The Level of Substantive Procedures Will Be Limited When