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Which option completes this sentence?
IS auditors are most likely to reduce substantive test procedure if after compliance test they conclude that __________________.



A. A substantive test would be too costly.
B. The control environment is poor.
C. Inherent risk is low.
D. Control risks are within the acceptable limits.

This question is part of CISA - Mock Test - Domain 1 (100 Questions)
Asked by Hemangdoshi, Last updated: Aug 17, 2018

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1 Answer

hemangdoshi

Hemangdoshi

Answered on Feb 15, 2018

D. control risks are within the acceptable limits.

In any given scenario, outcome/result of compliance testing will form the basis for planning of substantive testing. For example, if compliance testing indicates strong internal control, substantive testing may be waived off or reduced. In case compliance testing indicates weak internal controls then substantive testing to be more rigorous. The development of substantive tests is often dependent on the outcome of compliance tests.
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