What audit procedures are designed to detect material misstatements at the assertion level?
A)Substantive procedures
B)Tests of control
C)Fraudulent financial reporting
D)Misappropriation of assets

Question

Quizplus · Accepted Answer

Substantive procedures are audit procedures designed to detect material misstatements at the assertion level. Tests of control relate to the effectiveness of internal controls and may not directly relate to material misstatements at the assertion level. Fraudulent financial reporting and misappropriation of assets are types of financial statement fraud that may require specific audit procedures to detect, but they are not necessarily designed to detect material misstatements at the assertion level.

What Audit Procedures Are Designed to Detect Material Misstatements at the Assertion