[[MULTIPLE-CHOICE QUESTIONS]] An auditor determines that management integrity is high, the risk of

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[[MULTIPLE-CHOICE QUESTIONS]]

An auditor determines that management integrity is high, the risk of material misstatement is low, and the client’s internal controls are effective. Which of the following conclusions can be reached regarding the need to obtain direct evidence regarding the account balances?

a. Direct evidence can be limited to material account balances, and the extent of testing should be sufficient to corroborate the auditor’s assessment of low risk.

b. Direct evidence of account balances is not needed.

c. Direct evidence can be obtained through analytical procedures.

d. Direct evidence should be obtained for all accounts, regardless of the auditor’s assessment of control risk.

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