When auditors are performing substantive procedures and identify misstatements they did not expect, they _______.
A)reconsider their audit strategy and audit plan, and determine if the nature, timing, or extent of internal control testing needs to be modified
B)reconsider their audit strategy and audit plan, and determine if the nature, timing, or extent of substantive procedures need to be modified
C)should seek to obtain written representations from management as to the accuracy of the balances in question
D)should consider withdrawing from the engagement

Question

Quizplus · Accepted Answer

If auditors identify misstatements that they did not expect during substantive procedures, they should reconsider their audit strategy and plan for substantive procedures. This may involve modifying the nature, timing or extent of the procedures. This will help the auditor to obtain sufficient appropriate audit evidence that is necessary for reaching a conclusion about the fairness of the financial statements. Seeking written representations from management and withdrawing from the engagement are not appropriate responses in this situation.

When Auditors Are Performing Substantive Procedures and Identify Misstatements They