Which of the following choices would indicate an appropriate change in the auditor's approach to the audit, when an increased level of risk is present in a certain area?
A)Assignment of personnel with specialized skills for the area of increased risk
B)Assigning less audit staff to the engagement
C)Withdraw from the audit
D)Obtain management assurances in writing pertaining to the increased area of risk

Question

Quizplus · Accepted Answer

When an increased level of risk is present in a certain area, the auditor should assign personnel with specialized skills for the area of increased risk. This will ensure that the auditor has the necessary expertise to properly address the risk and perform the audit effectively. Assigning less audit staff (Option B) or withdrawing from the audit (Option C) is not an appropriate response to increased risk. Obtaining management assurances in writing (Option D) may be part of the auditor's approach, but it alone would not be enough to address the increased risk.

Which of the Following Choices Would Indicate an Appropriate Change