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) increase the tolerable misstatement for the area.
D) expand planning procedures.

Question

Quizplus · Accepted Answer

When auditing a business cycle with low inherent risk, the auditor can reduce the level of substantive procedures performed. As a result, they can increase the tolerable misstatement for the area. This will allow for fewer procedures to be performed, which will save time and cost. The other options may not be necessary or appropriate for a business cycle with low inherent risk.

An Auditor Who Audits a Business Cycle That Has Low