If control risk is high or maximum, and there are no compensating controls, the auditor should _______.
A) assume that fraud risk is high, and design appropriate substantive tests, particularly substantive tests of transactions
B) assume that fraud risk is low, and design appropriate substantive tests, particularly substantive tests of transactions
C) consider withdrawing from the engagement
D) request additional written representation from management
Correct Answer:
Verified
Q35: An audit of inventory _.
A)will vary from
Q36: Which of the following include cash in
Q37: In which of the following assertions is
Q38: Which of the following is/are essential to
Q39: An important rights and obligations issue _.
A)deals
Q41: With a manufacturer, wholesaler, or retailer, _.
A)inventory
Q42: The auditor should be alert to _.
A)incentives
Q43: Many elements of valuing inventory _.
A)should be
Q44: The audit strategy pertaining to inventory is
Q45: Consigned inventory held by the client, _.
A)should
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents