Auditors face higher levels of audit risk than they deemed acceptable in all of the below circumstances except... The auditors fail to consider that the client's inventory is obsolete and can no longer be sold. The auditors have first-year staff on the engagement who are not supervised by an experienced auditor. The auditors increase the scope of substantive procedures when control risk is high. The auditors assess inherent risk (specifically FFR risk) as low when executives have compensation where bonuses are tied to financial performance.
Auditors face higher levels of audit risk than they deemed acceptable in all of the below circumstances except... The auditors fail to consider that the client's inventory is obsolete and can no longer be sold. The auditors have first-year staff on the engagement who are not supervised by an experienced auditor. The auditors increase the scope of substantive procedures when control risk is high. The auditors assess inherent risk (specifically FFR risk) as low when executives have compensation where bonuses are tied to financial performance.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
A 19.
Transcribed Image Text:Auditors face higher levels of audit risk than they deemed acceptable in all of the below
circumstances except...
The auditors fail to consider that the client's inventory is obsolete and can no longer be
sold.
The auditors have first-year staff on the engagement who are not supervised by an
experienced auditor.
The auditors increase the scope of substantive procedures when control risk is high.
The auditors assess inherent risk (specifically FFR risk) as low when executives have
compensation where bonuses are tied to financial performance.
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