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For a "Significant Risk" identified under SA 315, SA 330 specifically requires that:
AOnly tests of controls be used
BReliance on substantive analytics from prior years
CSubstantive procedures specifically responsive to the risk be performed in the current period
DOnly analytical procedures be used
Answer & Solution
Correct answer: D. Only analytical procedures be used
1. SA 330.21 requires period-specific substantive procedures for each significant risk.
2. Prior-period reliance is insufficient for significant risks.
3. Analytics alone or controls alone are not sufficient.
_Source: ICAI BoS CA Final Paper 3, Ch 3 "Risk Assessment and Internal Control"_
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