After the auditor has completed test of controls and drawn a conclusion about control risk, _______.
A)the auditor will want to make decisions about the nature, timing and extent of substantive testing
B)the auditor will want to make decisions about the nature of substantive testing
C)the auditor will want to make decisions about the timing of substantive testing
D)the auditor will want to make decisions about the extent of substantive testing

Question

Quizplus · Accepted Answer

Once the auditor has completed test of controls and drawn a conclusion about control risk, the auditor will want to make decisions about the nature, timing, and extent of substantive testing. This is because the auditor needs to determine how much substantive testing is necessary given the level of control risk and the overall audit risk. The auditor needs to decide which accounts and transactions to test, when to perform the testing, and how much testing is necessary to provide sufficient evidence. Therefore, choice A is the best choice as it encompasses all three aspects of decision making.

After the Auditor Has Completed Test of Controls and Drawn