Final answer:
If the risk of material misstatement is higher than originally anticipated, the auditor may respond by increasing substantive procedures to reduce the risk of missing any material misstatements.
Step-by-step explanation:
If the risk of material misstatement is higher than originally anticipated, the auditor may respond by increasing substantive procedures. This means that the auditor will perform additional testing and gather more evidence to reduce the risk of missing any material misstatements. By increasing substantive procedures, the auditor is taking a more thorough approach to ensure the accuracy and reliability of the financial statements.
On the other hand, reducing substantive procedures would not be an appropriate response, as it could increase the risk of not detecting material misstatements. Relying solely on internal controls is also not recommended if the risk is higher, as internal controls alone may not be sufficient to address the increased risk.