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Trade off between substantive testing and testing of control

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3. What is the most likely course of action that an auditor would take after determining that performing substantive tests on inventory will take less time than performing tests of control?

a) access control risk at a low level
b) perform both tests of controls and substantive tests on inventory
c) perform only substantive tests on inventory
d) perform only tests of controls on inventory

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Solution Summary

The expert examines the trade offs between substantive testing and testing of control.

Solution provided by:
Carol Sargent, PhD
Education
  • BSc, University of Virginia
  • MSc, University of Virginia
  • PhD, Georgia State University
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