Question
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
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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. |
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