Control risk and the amount of substantive evidence required are directly related; i.e., as control risk increases, the amount of substantive evidence the auditor plans to accumulate should increase.

Question

Quizplus · Accepted Answer

As control risk increases, indicating that the internal controls are less effective, the auditor needs to gather more substantive evidence to ensure the financial statements are free of material misstatement.

Control Risk and the Amount of Substantive Evidence Required Are