Which of the following actions cannot be taken by the auditors to reduce audit risk?
A) Increase the amount of substantive testing of balances at year-end.
B) Reduce the level of inherent risk.
C) Increase the use of analytical procedures.
D) Reduce the level of detection risk.

Question

Quizplus · Accepted Answer

The auditors cannot directly reduce the level of inherent risk since it is an assessment of the risk of material misstatement before considering the effectiveness of internal controls or the audit work performed. The auditors can only reduce the overall audit risk by adjusting the level of detection risk or the amount of substantive testing.

Which of the Following Actions Cannot Be Taken by the Auditors