Substantive testing can be conducted using which of the following procedures?
A) enquiry
B) confirmation
C) analytical review
D) all of the above

Question

Quizplus · Accepted Answer

Substantive testing involves testing the balances and transactions in an entity's financial statements to determine whether they are materially correct. Enquiry involves obtaining information from management and staff about transactions and balances. Confirmations involve obtaining direct verification of balances and transactions from external parties. Analytical review involves analyzing the relationships between different accounts and between current and previous periods. All three procedures can be used in substantive testing, and therefore, choice D is the best answer.

Substantive Testing Can Be Conducted Using Which of the Following