If the lower assessed level of control risk approach preliminary audit strategy is used, the planned level of substantive procedures will be:
A) at the lower level.
B) moderate or high.
C) at the higher level.
D) high or very high.

Question

Quizplus · Accepted Answer

When the lower assessed level of control risk approach is used in preliminary audit strategy, it implies that the auditor has a high degree of confidence in the effectiveness of the entity's internal controls. Therefore, the auditor plans for a lower level of substantive procedures because they rely more on the controls preventing or detecting material misstatements.

If the Lower Assessed Level of Control Risk Approach Preliminary