An auditor who audits a business cycle that has low inherent risk should
A) increase the amount of audit evidence gathered.
B) assign more experienced staff to that area.
C) expand planning procedures.
D) do none of the above.

Question

Quizplus · Accepted Answer

Low inherent risk means that there is a lower likelihood of material misstatements occurring in the business cycle. Therefore, the auditor does not need to increase the amount of audit evidence gathered or assign more experienced staff, nor is it necessary to expand planning procedures. Instead, the auditor can rely on standard audit procedures to ensure that the financial statements are fairly presented.

An Auditor Who Audits a Business Cycle That Has Low