Based on the results of attributes sampling,the audit team assessed control risk too low and did not modify the nature,timing,and extent of its further audit procedures to reduce detection risk.This situation would most likely result in a(n)
A) higher level of audit risk than planned.
B) lower level of inherent risk.
C) greater efficiency loss.
D) lower effectiveness loss.

Question

Quizplus · Accepted Answer

If the audit team assessed control risk too low and did not modify their further audit procedures to reduce detection risk, then there is a higher likelihood that they will not detect material misstatements. This results in a higher level of audit risk than planned, as audit risk equals inherent risk multiplied by control risk multiplied by detection risk. Therefore, choosing option A is the best choice. Options B, C, and D are incorrect since they are not related to the situation described.

Based on the Results of Attributes Sampling,the Audit Team Assessed