When an auditor increases the assessed level of risk of material misstatement because certain control procedures were determined to be ineffective, the auditor would most likely increase the:
A)extent of tests of controls.
B)level of detection risk.
C)extent of substantive tests.
D)level of inherent risk.

Question

Quizplus · Accepted Answer

When an auditor increases the assessed level of risk of material misstatement due to ineffective control procedures, they would likely increase the extent of substantive tests to compensate for the higher risk and ensure that material misstatements are detected.

When an Auditor Increases the Assessed Level of Risk of Material