When it is concluded that the nature and frequency of deviations exceeds the tolerable level, the auditor should:
A)increase the extent of substantive procedures.
B)adopt a lower assessed level of control risk strategy.
C)reduce the level of control risk.
D)increase the level of detection risk.

Question

Quizplus · Accepted Answer

When deviations exceed the tolerable level, it indicates that controls may not be effective, so the auditor should increase substantive procedures to gather more evidence and address the higher risk of material misstatement.

When It Is Concluded That the Nature and Frequency of Deviations