When an auditor increases the planned assessed level of control risk because certain control procedures were determined to be ineffective, the auditor would most likely increase the
A)Extent of tests of details.
B)Level of inherent risk.
C)Extent of tests of controls.
D)Level of detection risk.

Question

Quizplus · Accepted Answer

When control risk is assessed as higher due to ineffective controls, the auditor compensates by increasing the extent of substantive testing, such as tests of details, to reduce detection risk and ensure sufficient audit evidence is obtained.

When an Auditor Increases the Planned Assessed Level of Control