The Assessed Risk of Material Misstatement Influences Audit Decisions About

Multiple Choice

The assessed risk of material misstatement influences audit decisions about audit procedures. Which of the following decisions is more appropriate when the risk of material misstatement is assessed as low rather than when it is assessed as high?

A) Performing audit procedures at the balance sheet date.
B) Performing audit procedures on a larger proportion of the population.
C) Obtaining audit evidence primarily with substantive tests.
D) Including the most experienced individuals on the audit team.
E) Choosing substantive audit procedures that provide less persuasive evidence when considering benefits and costs.