Which mix of evidence would be most appropriate for the following scenario? This is a client where the auditor has assessed the risk of material misstatement related to the existence and completeness of cash at the maximum level. This client has incentives to overstate cash in order to meet debt covenants. Further, the client has relatively weak controls to prevent theft of cash, with a few controls being somewhat effective.

Which mix of evidence would be most appropriate for the following scenario? This is a client where the auditor has assessed the risk of material misstatement related to the existence and completeness of cash at the maximum level. This client has incentives to overstate cash in order to meet debt covenants. Further, the client has relatively weak controls to prevent theft of cash, with a few controls being somewhat effective.

Which mix of evidence would be most appropriate for the following scenario?
This is a client where the auditor has assessed the risk of material misstatement related to the existence and completeness of cash at the maximum level. This client has incentives to overstate cash in order to meet debt covenants. Further, the client has relatively weak controls to prevent theft of cash, with a few controls being somewhat effective.



a. 100% test of details.
b. 70% test of details, 10% analytics, 20% test of controls.
c. 50% test of details, 10% analytics, 40% test of controls.
d. 20% test of details, 40% analytics, 40% test of controls.









Answer: B


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