Which mix of evidence would be most

Which mix of evidence would be most

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 of inven- tory at the maximum level. This client has incentives to overstate income to achieve profit targets that affect management bonuses.

Oversight of the vice president of finance is relatively weak because of a lack of supervision by top management. Other controls are designed effectively.

Which mix of evidence would be most

a. 100% tests of details.

b. 50% tests of details, 30% analytics, 20% tests of controls. c. 30% tests of details, 40% analytics, 30% tests of controls. d. 20% tests of details, 40% analytics, 40% tests of controls.

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