Moises Alou has reviewed internal controls at a spring training facility in Florida and has deemed control risk to be high. Which kind of audit strategy may be appropriate for Moises?
A) combined audit strategy
B) substantive audit strategy
C) a and b
D) none of the above

Question

Quizplus · Accepted Answer

Since control risk is high, Moises may decide to employ a substantive audit strategy which focuses on verifying the accuracy of specific transactions and balances. This strategy is typically used when control risk is high and it may not be efficient or effective to rely heavily on internal controls. A combined audit strategy may not be suitable in this case as there is a high risk that internal controls may not be reliable.

Moises Alou Has Reviewed Internal Controls at a Spring Training