Under conditions of high inherent and control risk, which of the following is true regarding materiality and evidence?

• A. Where inherent risk is high and control risk is low, the auditor may safely ignore inherent risk.
• B. Under conditions of high inherent and control risk, the auditor should place more emphasis on obtaining external evidence and should reduce reliance on internal evidence.
• C. The lower inherent risk and control risk, the lower the aggregated materiality threshold.
• D. Aggregated materiality thresholds should not change under changing risk levels.

Answer: (B)