Final answer:
If the assessed risk of material misstatement is high, an auditor would probably increase substantive procedures when auditing a client's perpetual inventory records in quantities and in dollars.
Step-by-step explanation:
If the assessed risk of material misstatement is high, an auditor would probably increase substantive procedures when auditing a client's perpetual inventory records in quantities and in dollars. This means the auditor would perform additional audit tests and gather more evidence to validate the accuracy of the inventory records.
For example, the auditor may decide to physically count the inventory items to compare it with the client's records and ensure there are no discrepancies. They may also review the client's inventory management system and internal controls to identify any weaknesses or errors that could lead to material misstatements.
By increasing substantive procedures, the auditor aims to minimize the risk of not detecting any material misstatements and provide reasonable assurance on the accuracy of the client's inventory records.