If the client relies on computer controls and the auditor plans to assess control risk as low for revenue cycle assertions, the auditor will usually $\_\_\_\_\_\_\_\_.$

Question $7$ options:

A$)$

drastically increase the sample size

B$)$

perform substantive testing, to increase the confidence level

C$)$

test the whole population as opposed to a sample

D$)$

test the effectiveness of general controls

Question $6$ options:

A$)$

The audit team should consider selecting, on a test basis, a sample of revenue and receivables transactions to ensure that they are recorded in the correct periods respectively. Such a procedure would assist the auditor in testing the accuracy assertion.

B$)$

The audit team should consider developing an expectation of accounts payable balances based on information from prior years audits. The audit team can also examine competing firms within the same industry to help develop this expectation.

C$)$

The audit team should consider examining key metrics pertaining to sales such as accounts receivable turnover. Such ratios can be analyzed relative to prior years and industry averages.

D$)$

The audit team should consider calculating key ratios that pertain to revenue generation. Examples of such ratios would be accounts receivable turnover ratio and times interest earned.