The highest-cost audit will be incurred when the auditor expects that the internal control system would
A)be effective but the auditor found extensive control test deviations.
B)have few effective controls but client's personnel were well-trained and knowledgeable.
C)be very sophisticated and the tests of controls confirmed this.
D)have few effective controls and tests of balances found many errors.

Question

Quizplus · Accepted Answer

When the auditor expects effective controls but finds extensive deviations, additional substantive testing is required, increasing audit costs.

The Highest-Cost Audit Will Be Incurred When the Auditor Expects