After performing a risk assessment of a food processing company, Sean Spino has come to the conclusion that he will require more evidence to be obtained by his audit team from substantive procedures. Which of the factors below led him to this conclusion?
A) the level of assurance necessary
B) the type of evidence required
C) the nature of the test
D) the complexity of the client's data capturing systems

Question

Quizplus · Accepted Answer

The level of assurance necessary is a factor that would lead an auditor to conclude that more evidence is required from substantive procedures. The level of assurance necessary is the degree of confidence that the auditor wants to have that the financial statements are free from material misstatement. The higher the level of assurance, the more evidence the auditor will need to obtain.

After Performing a Risk Assessment of a Food Processing Company