If inherent risk is high and no assurance has been obtained from controls testing:
A) only overall analytical review procedures need to be performed to reduce detection risk to an acceptable level.
B) no further substantive testing needs to be performed.
C) extensive substantive procedures need to be performed to estimate the dollar value of any error in the account balance.
D) None of the above.

Question

Quizplus · Accepted Answer

When inherent risk is high and no assurance has been obtained from controls testing, extensive substantive procedures need to be performed to estimate the dollar value of any error in the account balance. This is necessary to reduce detection risk to an acceptable level. Overall analytical review procedures alone may not be sufficient in this situation, and no substantive testing is not an appropriate option.

If Inherent Risk Is High and No Assurance Has Been