1. An auditor determines that the audit risk is low, the inherent risk is high and the clients internal controls are not effective. Which of the following conclusions can be reached?

	A.	None of the options is correct.
	B.	Auditors need to perform tests of controls. If the clients internal control is proven to be effective, reduce the extent of substantive tests.
	C.	Predominantly substantive strategy needs to be used.
	D.	Auditors can choose to use lower assessed control risk strategy.
	E.	Auditors have to test the clients internal controls and perform extensive amount of substantive tests.