A PA Is Conducting the Audit of Middi Furniture Company,a

Multiple Choice

A PA is conducting the audit of Middi Furniture Company,a medium-sized company with few effective controls and significant inherent risks.Management has decided that it is not cost-effective to implement better internal controls.What audit strategy will the PA likely select for this client?

A) combined audit approach for all transaction cycles and accounts
B) substantive audit approach for all transaction cycles and accounts
C) combined audit approach for all cycles except cash and inventory
D) substantive audit approach for all cycles except sales and payroll