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When responding to assessed risks at the financial-statement level, the auditor's overall responses include:
AEmphasising professional scepticism, assigning more experienced staff, increasing supervision, providing element of unpredictability
BReducing the audit team size
COutsourcing the entire audit
DIssuing a disclaimer of opinion
Answer & Solution
Correct answer: A. Emphasising professional scepticism, assigning more experienced staff, increasing supervision, providing element of unpredictability
1. SA 330.5 lists overall responses: scepticism, expertise, supervision, unpredictability.
2. Reducing team or outsourcing is opposite.
3. Disclaimer is reserved for unresolved limitations.
_Source: ICAI BoS CA Final Paper 3, Ch 3 "Risk Assessment and Internal Control"_
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