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At every audit engagement, the auditor is required to consider that there could be significant risks ...

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At every audit engagement, the auditor is required to consider that there could be significant risks ...

At every audit engagement, the auditor is required to consider that there could be significant risks of misstatement for revenue recognition. At ABC Ltd., the auditor has concluded that, yes, there are material risks of misstatement associated with revenue recognition. How does this affect the extent of testing for accounts receivable?
A) audit risk will be increased
B) inherent risks will be decreased
C) decreased control testing is required
D) increased substantive testing is required

Textbook

Auditing: The Art and Science of Assurance Engagements, Canadian Edition

Edition: 12^th

Authors: Arens, Elder, Beasley, Splettstoesser

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victrox

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More solutions for this book are available here

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npeelman Author

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5 years ago

Thanks man

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