The nature, timing, and extent of audit needed audit tests will depend upon the answers to each of the following questions except
A) How could a material misstatement happen?
B) What internal controls has the client implemented to address potential misstatements?
C) How might internal controls fail such that a material misstatement occurs?
D) How many times have material misstatements been undetected?

Question

Quizplus · Accepted Answer

The nature, timing, and extent of audit needed audit tests will depend on how misstatements could happen, what internal controls have been implemented, and how these controls can fail. The history of the detection of material misstatements is not a relevant factor in determining audit tests. Therefore, choice D is the correct answer.

The Nature, Timing, and Extent of Audit Needed Audit Tests