If the auditor finds extensive control test deviations and significant misstatements while performing substantive tests of transactions and substantive analytical procedures,
A) the cost of the audit should decrease.
B) the auditor will conclude that internal controls are effective.
C) extensive tests of details of balances will need to be performed.
D) all of the above.

Question

Quizplus · Accepted Answer

If the auditor finds extensive control test deviations and significant misstatements while performing substantive tests of transactions and substantive analytical procedures, it indicates that internal controls are not effective. As a result, extensive tests of details of balances will need to be performed to obtain sufficient evidence to support the financial statements. The cost of the audit may increase due to the need for additional testing. Therefore, only option C is correct.

If the Auditor Finds Extensive Control Test Deviations and Significant