Question 30If the auditor plans to assess control risk at less than the maximum and rely on internal controls , and the nature, timing, and extent of further audit procedures are based on the lower assessment the auditor must: Obtain evidence that the controls selected for testing are designed effectively and operating effectively during the period under audit. Assess control risk less than the maximum for all relevant assertions. Perform only substantive procedures Provide additional examples of responses to assessed fraud risks relating to fraudulent financial reporting.

Introduction:- The auditor intends to evaluate audit risks at a reduced level than highest and…

Answered: Question 30 If the auditor plans to…

Auditing: A Risk Based-Approach (MindTap Course List)

11th Edition

ISBN:9781337619455

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter5: Professional Auditing Standards And The Audit Opinion Formulation Process

Section: Chapter Questions

Problem 39CYBK

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Question 30

If the auditor plans to assess control risk at less than the maximum and rely on internal controls , and the nature, timing, and extent of further audit procedures are based on the lower assessment the auditor must:

		Obtain evidence that the controls selected for testing are designed effectively and operating effectively during the period under audit.
		Assess control risk less than the maximum for all relevant assertions.
		Perform only substantive procedures
		Provide additional examples of responses to assessed fraud risks relating to fraudulent financial reporting.

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