The reliance placed on substantive tests in relation to the reliance placed on internal control varies in a relationship that is ordinarily:
A) parallel.
B) inverse.
C) equal.
D) direct.

Question

Quizplus · Accepted Answer

The reliance placed on substantive tests and internal control is inversely proportional. The more reliance placed on substantive tests, the lower the reliance on internal control and vice versa. This is because substantive tests are performed when the internal control is not effective or the auditor does not rely on it, whereas when the internal control is reliable, the auditor can place more reliance on it and reduce the extent of substantive tests.

The Reliance Placed on Substantive Tests in Relation to the Reliance