At the outset of substantive testing, the auditor needs to _______.
A)determine the population being tested
B)the assertion or assertions being tested
C)if the auditor is trying to estimate the total dollar value of the population, or the total amount of misstatement that might exist in the population
D)All of these answer choices are correct.

Question

Quizplus · Accepted Answer

All three factors are important considerations at the outset of substantive testing to ensure the auditor is properly scoping and designing their testing procedures. Determining the population being tested helps focus testing efforts and ensure appropriate sample sizes are selected. Identifying the assertion being tested helps to ensure that the testing procedures are providing relevant and reliable evidence to support management's assertions. Finally, understanding the scope of testing required (e.g. estimating the total dollar value of the population or the total amount of misstatement) helps guide the level of testing required and the appropriate sample sizes to select.

At the Outset of Substantive Testing, the Auditor Needs to _______