When evaluating the planned level of substantive tests for each significant financial statement assertion, the auditor will consider the evidence obtained from all of the following except:
A) procedures to understand the business and industry and related analytical procedures that have been completed.
B) evidence about the effectiveness of internal controls gained while obtaining an understanding of internal controls.
C) the assessment of detection risk.
D) the assessment of inherent risk.
E) evidence of effectiveness of computer control procedures and related manual follow-up.

Question

Quizplus · Accepted Answer

The assessment of detection risk is considered when determining the nature, timing, and extent of substantive tests, not when evaluating the planned level of these tests. The auditor uses detection risk to adjust the substantive tests' scope but does not consider it as evidence obtained for planning those tests.

When Evaluating the Planned Level of Substantive Tests for Each