Moises Alou has reviewed internal controls at a spring training facility in Florida and has deemed control risk to be high. Which kind of audit strategy may be appropriate for Moises?
A) combined audit strategy
B) substantive audit strategy
C) both a and b
D) none of the above

Question

Quizplus · Accepted Answer

Since control risk is high, the substantive audit strategy may be appropriate for Moises. This strategy focuses on detecting and correcting material misstatements in the financial statements through substantive procedures such as testing transactions and balances. A combined audit strategy involves both testing controls and performing substantive procedures, but it may not be appropriate in this case since control risk is already high. Therefore, choice A is incorrect. Choice C is also incorrect since a combined audit strategy is not necessarily the best option. Choice D is incorrect since there is a need for an audit strategy.

Moises Alou Has Reviewed Internal Controls at a Spring Training