Current Attempt in Progress

T$.$ Smith, CPA, is auditing JKJ Jewelry Inc. JKJ Jewelry sells mostly low valse cosmetic jewelry. A large amount of inventory would need

to be stolen to make a material impact on the financial statements. JKJ requires employees to perform daily inventory counts to

ensure all jewelry is accounted for. Which of the following is true?

a substantive audit strategy will likely be chosen

the risk of material misstatement will likely be assessed as low

the auditor will likely assess control risk as high

the auditor will likely assess inherent risk as high