The auditor uses the assessed level of risk of material misstatement to determine the acceptable level of detection risk for financial statement assertions.As the acceptable level of detection risk decreases,the auditor may do one or more of the following except change the
A) Nature of substantive tests to more effective procedures.
B) Timing of substantive tests, such as performing them at year-end rather than at an interim date.
C) Extent of substantive tests, such as using larger sample sizes.
D) Assurances provided by substantive tests to a lower level.

Question

Quizplus · Accepted Answer

As the acceptable level of detection risk decreases, the auditor will increase the level of assurance provided by substantive tests, not decrease it. Therefore, changing the assurance provided by substantive tests to a lower level is not an option.

The Auditor Uses the Assessed Level of Risk of Material