While performing a substantive test of details during an audit, the auditor determined that the sample results supported the conclusion that the recorded account balance was materially misstated.Which of the following is the least likely auditor reaction to this discovery?
A)Perform expanded audit tests in the relevant areas.
B)Increase detection risk in the relevant areas.
C)Increase the sample size.
D)Take no action until tests of other audit areas are completed.

Question

Quizplus · Accepted Answer

If the sample results support the conclusion that the recorded account balance is materially misstated, it is not likely that the auditor will increase detection risk in the relevant areas. The auditor's primary objective is to reduce detection risk, so it is more likely that the auditor will perform expanded audit tests in the relevant areas or increase the sample size to obtain more conclusive evidence. Taking no action until tests of other audit areas are completed is not advisable because there is a risk of overlooking significant errors or fraud.

While Performing a Substantive Test of Details During an Audit