Final answer:
When control procedures are deemed ineffective, an auditor is likely to increase the extent of substantive tests to ensure that the detection risk is minimized and the audit evidence is sufficient to draw a conclusion about the financial statements.
Step-by-step explanation:
When an auditor increases the assessed level of risk of material misstatement because certain control procedures were determined to be ineffective, they would most likely increase the extent of substantive tests. This is because as the risk assessment for material misstatement goes up, the auditor must gather more audit evidence to reduce the detection risk, which is the risk that the auditor won't detect a material misstatement. Therefore, the auditor would perform more substantial tests to decrease the overall audit risk to an acceptable level.
In contrast, auditors do not have control over the level of inherent risk – this risk is part of the environment in which a company operates. The extent of tests of controls might be increased if there were a possibility to rely on some other controls that are effective, but an increase is more directly related to instances where the auditor believes controls might actually be effective. The level of detection risk is managed through the quantity and quality of substantive tests, rather than being directly increased as a reaction to risk assessment.