Which one of the following statements is TRUE? In deciding on substantive tests of transactions:
A) the materiality of the item will NOT influence the choice of procedures used.
B) all procedures are dependent on the adequacy of the controls and the results of the tests of controls.
C) results obtained in the prior year's audit will NOT affect the procedures used this year.
D) some procedures are commonly employed on every audit regardless of the circumstances.

Question

Quizplus · Accepted Answer

Some audit procedures are considered fundamental and are employed in virtually every audit, regardless of the specific circumstances of the entity being audited. These procedures are designed to provide a minimum level of assurance that the financial statements are free of material misstatement.

Which One of the Following Statements Is TRUE? in Deciding