When conducting detailed substantive procedures, auditors search for evidence that:
A) the client's internal control system is operating effectively
B) all transactions have been recorded in the accounts
C) no fraud has occurred during the year
D) they have remained independent of their clients

Question

Quizplus · Accepted Answer

When conducting detailed substantive procedures, auditors search for evidence that all transactions have been recorded in the accounts. This involves selecting samples of transactions and verifying the supporting documentation to ensure that they are accurately recorded in the financial statements. Auditors may also test the completeness of transactions by reconciling sub-ledgers to the general ledger, investigating unrecorded liabilities, and performing other procedures to ensure that all transactions have been recorded. The other options listed are not the primary focus of substantive procedures.

When Conducting Detailed Substantive Procedures, Auditors Search for Evidence That