Henrietta Lombardi assessed control risk to be low. What is the appropriate audit strategy to adopt?
A) substantive audit approach
B) control testing strategy
C) combined audit strategy
D) substantive year end testing

Question

Quizplus · Accepted Answer

A combined audit strategy involves both tests of controls (when control risk is assessed as low, indicating reliance on the controls) and substantive procedures. This approach is appropriate when the auditor believes the entity's controls are effective and plans to rely on them to reduce the extent of substantive testing.

Henrietta Lombardi Assessed Control Risk to Be Low