[CPApracticer]

Hey Guys, I have a really quick question. Im studying for audit, however I cannot find the answer for this question…

A high detection risk strategy includes all of the following except

a. interim testing

b. reduced testing of transactions

c. heavy reliance on analytical procedures as substantive procedures

d. audit work only completed at year end

I know for sure it cannot be B. I also know that high detection risk is less work. So I am not sure if its a,c, or d. Anyone can help, I greatly appreciate it

F: 54 (4/13) 60 (4/14) 67 (9/14) 66 (10/14) 63 (11/15) 79 (2/16) PASSED
A: 60 (5/13) 80 (4/16) PASSED
R: 60 (7/13) 61 (2/15) 70 (4/15) 77 (7/15) PASSED
B: (6/16)

[yankeeaccountant]

I posted an answer in the Audit thread. Good luck!

[iPass]

I actually was thinking about D as a correct answer. I believe if you as an auditor willing to accept high detection risk, you are OK with missing something, then you will most likely can do interim testing, not only year end.

BEC - 10/12/2011 - 78
AUD - 11/23/2011 - 84
FAR - 02/22/2012 - 76 (I'll take it!)
REG - 08/31/2012

“Win as if you were used to it, lose as if you enjoyed it for a change.”
-Ralph Waldo Emerson

[iPass]

I just saw that yankee and tlindsey31 already posted the same answer… Seems like we all agree on the same answer

BEC - 10/12/2011 - 78
AUD - 11/23/2011 - 84
FAR - 02/22/2012 - 76 (I'll take it!)
REG - 08/31/2012

“Win as if you were used to it, lose as if you enjoyed it for a change.”
-Ralph Waldo Emerson

[shellgirl]

D.

High detection risk–> less substantive testing (inverse relationship)

Less substantive testing gives you-

Interim testing

Reduced testing

Rely on analytical procedure.

Testing at year end is an indication of lower detection risk and increase in substantive testing.

Hope I am right. 😉

CPA CLASS OF 2012!

[Author]

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