In an environment that is highly automated, an auditor determines that it is not possible toreduce detection risk solely by using substantive tests of transactions. Under these circumstances, the auditor most likely woulda. Perform tests of controls to support a lower level of assessed control risk.b. Increase the sample size to reduce sampling risk and detection risk.c. Adjust the materiality level and consider the effect on inherent risk.d. Apply analytical procedures and consider the effect on control risk

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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In an environment that is highly automated, an auditor determines that it is not possible to
reduce detection risk solely by using substantive tests of transactions. Under these circumstances, the auditor most likely would
a. Perform tests of controls to support a lower level of assessed control risk.
b. Increase the sample size to reduce sampling risk and detection risk.
c. Adjust the materiality level and consider the effect on inherent risk.
d. Apply analytical procedures and consider the effect on control risk

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