On the basis of audit evidence gathered and evaluated,an auditor decides to increase the assessed level of control risk from that originally planned.To achieve an overall audit risk level that is substantially the same as the planned audit risk level,the auditor would ________.
A)decrease inherent risk to offset the increased control risk level
B)decrease detection risk and increase planned substantive audit procedures
C)increase inherent risk and decrease planned substantive audit procedures
D)increase materiality levels

Question

Quizplus · Accepted Answer

If the auditor decides to increase the assessed level of control risk, they must make adjustments to the planned level of detection risk or assessed level of inherent risk. To achieve an overall audit risk level that is substantially the same as the planned audit risk level, the auditor would decrease detection risk and increase planned substantive audit procedures. This will compensate for the increase in control risk and ensure that the overall audit risk remains at the planned level. Decreasing inherent risk or increasing materiality levels would not be a suitable solution in this scenario.

On the Basis of Audit Evidence Gathered and Evaluated,an Auditor