The auditor is performing substantive procedures several months before the end of the year. This most likely means that:
A) inherent risk is set at high.
B) detection risk is set at high
C) control risk is set at maximum.
D) none of the above are correct

Question

Quizplus · Accepted Answer

Performing substantive procedures early suggests that the auditor is willing to accept a higher detection risk, as there is more time for errors or fraud to occur before year-end.

The Auditor Is Performing Substantive Procedures Several Months Before the End