Shown below (1-5)are the five types of tests which auditors use to determine whether financial statements are fairly stated.Which three are substantive tests?
1) procedures to obtain an understanding of internal control
2) tests of controls
3) tests of transactions
4) analytical procedures
5) tests of balances
A) 2, 3 and 4
B) 1, 2 and 3
C) 3, 4 and 5
D) 2, 3 and 5

Question

Quizplus · Accepted Answer

Substantive tests include tests of transactions (3), analytical procedures (4), and tests of balances (5). These are directly concerned with amounts and assertions in financial statements, unlike tests of controls or procedures to understand internal control.

Shown Below (1-5)are the Five Types of Tests Which Auditors