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Homework Answers
When the auditor detects deficiencies in controls over revenue on which the auditor plans to rely, standards require the auditor to evaluate the severity of the control deficiencies and the effect on the auditor's control risk assessments. He should
1) Perform tests of other controls related to the same assertion
2) Revise the control risk assessment and modify the planned substantive procedures as necessary in light of the increased assessment of risk
3) The auditor should not rely on the related substantive procedures associated with failed control
4) Prepare flow chart of control design and find the flaws and stop relying on the control based on that.
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