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The auditor has determined that the perpetual inventory master files are high quality, assessing ...

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The auditor has determined that the perpetual inventory master files are high quality, assessing ...

The auditor has determined that the perpetual inventory master files are high quality, assessing control risk related to physical observation of inventory as low. How does this affect audit testing? The auditor may
A) reduce the extent of control tests over data entry to the master file.
B) reduce the extent of the tests of physical inventory.
C) reduce the extent of control tests with respect to program change controls.
D) increase assessed inherent risks over the tests of physical inventory.

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

Edition: 12^th

Authors: Arens, Elder, Beasley, Splettstoesser

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Auditing: The Art and Science of Assurance Engagements, Twelfth Canadian Edition, 12/E (Arens, Elder, Beasley, Splettstoesser)

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