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Maddy co. is a new audit client of your firm. You have been planning the audit, and have concluded that due to unstable market conditions
Maddy co. is a new audit client of your firm. You have been planning the audit, and have concluded that due to unstable market conditions and a poor control eviroment, the risk of material misstatement is high.
What would be an appropriate response in order to minimise audit risk?
A) Increase reliance on client-generated audit evidence
B) Perform audit procedures at the interim date rather than the year end
C) Reduce the level of performance materiality
D) Reduce sample sizes for tests of detail
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