When the auditor has assessed control risk of a particular area at a reduced level, he or she will then Select one: a. eliminate the need to gather evidence in that area. b. test the effectiveness of the controls in that area. c. proceed to expand the sample sizes in that area. d. negotiate with management to determine which controls will be tested in that area.
When the auditor has assessed control risk of a particular area at a reduced level, he or she will then Select one: a. eliminate the need to gather evidence in that area. b. test the effectiveness of the controls in that area. c. proceed to expand the sample sizes in that area. d. negotiate with management to determine which controls will be tested in that area.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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When the auditor has assessed control risk of a particular area at a reduced level, he or she will then
Select one:
a. eliminate the need to gather evidence in that area.
b. test the effectiveness of the controls in that area.
c. proceed to expand the sample sizes in that area.
d. negotiate with management to determine which controls will be tested in that area.
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