1. 

   CPApracticer
   

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   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

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   Posted 6 months ago #
2. 

   yankeeaccountant
   

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

   Posted 6 months ago #
3. 

   iPass
   

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   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
   REG - May 2012
   
   “Win as if you were used to it, lose as if you enjoyed it for a change.”
   -Ralph Waldo Emerson

   Posted 6 months ago #
4. 

   iPass
   

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   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
   REG - May 2012
   
   “Win as if you were used to it, lose as if you enjoyed it for a change.”
   -Ralph Waldo Emerson

   Posted 6 months ago #
5. 

   shellgirl
   

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   Member

   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!

   Posted 6 months ago #

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