Question: After identifying the risks of material misstatement, the auditor develops an audit plan in response to those risks. Which of the following plans for testing

After identifying the risks of material misstatement, the auditor develops an audit plan in response to those risks. Which of the following plans for testing revenue would be most likely if the auditor assesses control risk as high?
a. The only evidence the auditor plans to obtain is from tests of details.
b. The auditor plans to obtain 40% of the necessary audit evidence from tests of controls and the remaining 60% from substantive analytical procedures.
c. The auditor plans to obtain the majority of the necessary audit evidence from tests of controls.
d. Any of these plans would be an appropriate audit plan if the auditor believes that control risk is high.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Q:

MULTIPLE-CHOICE QUESTIONS 1. Which of the following statements is false regarding preliminary analytical procedures in the revenue cycle? a. Since revenue is typically regarded as a high-risk...

Q:

34 Reviewing the board of director minutes to identify p a. Presentation and Disclosure b. Existence C. Valuation d. Rights and Obligations QUESTION 35 Which of the following explanations best...

Q:

QUESTIONS Which of the following explanation bout describes the purpose of apply? A. A technique used by cont personnel to cover up the embezzlement of cash b an approach usne by client personnel to...

Q:

Southeast Shoe Distributor, Inc. Identification of Substantive Tests for the Sales and Collection Cycle (Sales and Cash Receipts) Objective: To illustrate documents and records used with sales and...

Q:

SecureTrade Ltd is a medium - sized trading company that imports and sells consumer electronics. The company operates in a competitive industry where price volatility, frequent product updates, and...

Q:

Dandelion Company (the Company) is a public entity with a December 31 fiscal year-end. The Company is an accelerated filer that issues annual and quarterly consolidated financial statements prepared...

Q:

Dandelion Company (the Company) is a public entity with a December 31 fiscal year-end. The Company is an accelerated filer that issues annual and quarterly consolidated financial statements prepared...

Q:

Dandelion Company (the Company) is a public entity with a December 31 fiscal year-end. The Company is an accelerated filer that issues annual and quarterly consolidated financial statements prepared...

Q:

1.As used in PSA 560, the term "subsequent events" refers to a.Events occurring the date of the financial statement. b.Events occurring after the date of the auditor's report c.Events occurring...

Q:

1.As used in PSA 560, the term "subsequent events" refers to a.Events occurring the date of the financial statement. b.Events occurring after the date of the auditor's report c.Events occurring...

Q:

Amcrest France Sarl, located in Paris. France, is a financial subsidiary of Target Corporation, a U.S. company. Amcrest's accounts are re- ported in euros. Assume that the following data relate to...

Q:

Fenway Athletic Club plans to offer its members preferred stock with a par value of $100 and a 6% annual dividend rate. If a member wants the following returns, what price should he or she willing to...

Q:

In the Markowitz framework, an investor should most appropriately evaluate a potential investment based on its:Group of answer choicesEffect on portfolio risk and return.Intrinsic value compared to...

Q:

As part of a presentation you are delivering via video conference, you want to show a slide deck you made in PowerPoint. Which of the following is the best way to make sure all participants can see...

Q:

Did you check all the correct names, telephone numbers, and emails for authorship and further information?

Q:

Did you offer hard data that is verifiable? [D]

Q:

Did you eliminate superlatives and complimentary adjectives to keep it unbiased? [yes or no]