MoisAlou 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) a and b
D) none of the above

Question

Quizplus · Accepted Answer

Since control risk is high, a substantive audit strategy may be appropriate. This involves focusing on testing the balances and transactions in the financial statements in order to detect any misstatements or errors, rather than relying on the effectiveness of the internal controls. A combined audit strategy involves both testing the internal controls and performing substantive procedures, but this may not be the best approach if control risk is high. Therefore, option C is incorrect. Option D is also incorrect as there is a suitable answer.

MoisAlou Has Reviewed Internal Controls at a Spring Training Facility