An auditor has gained a detailed understanding of the client's system of internal controls and has conducted extensive tests of those controls. She later assesses control risk as low.
What is she planning to perform?
A) a combined audit strategy
B) an audit of financial controls
C) a substantive audit strategy
D) a modified audit strategy

Question

Quizplus · Accepted Answer

A combined audit strategy involves both tests of controls and substantive procedures. Since the auditor has assessed control risk as low after testing the controls, she plans to rely on those controls and perform substantive procedures, which is characteristic of a combined audit strategy.

An Auditor Has Gained a Detailed Understanding of the Client's