The nature, timing and extent of substantive procedures is _________ related to assessed level of control risk?
Correct answer: C. directly
- A. randomly
- B. disproportionately
- C. directly
- D. inversely
Explanation
When assessed control risk rises, the auditor generally increases the nature, timing, or extent of substantive procedures; when control risk falls, substantive testing can be reduced. This is a direct relationship.
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About Auditing
Auditing examines accounting records and financial statements to determine whether they present a reliable and fairly stated position. The subject covers audit objectives, internal controls, audit evidence, materiality, vouching, verification, working papers, auditor independence, audit reports, and the distinction between an audit and accounting or investigation.
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