The audit strategy for a client with high inherent risk and high control risk will include:
A)Decreased reliance on substantive tests.
B)No or very limited tests of controls.
C)Increased testing of controls.
D)Increased reliance on controls.

Question

Quizplus · Accepted Answer

High inherent and control risks suggest that the auditor cannot rely on the client's internal controls, leading to a strategy that involves very limited or no tests of controls and an increased emphasis on substantive testing to obtain audit assurance.

The Audit Strategy for a Client with High Inherent Risk