Which statements relating to audit testing is most correct

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Reference no: EM132726154

Problem 1: Which of the following statements relating to audit testing is most correct?

A. Substantive tests are not necessary when the risk of material misstatement is low.

B. If the auditor performs more substantive tests of transactions for an assertion about a class of transactions (e.g., Sales), they will likely be able to perform fewer substantive tests of balances for the related assertion about the associated account balance (e.g. Accounts Receivable).

Reference no: EM132726154

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