Auditors use substantive analytical procedures and tests of details of balances to satisfy planned control risk.

Question

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Substantive analytical procedures are used to obtain evidence about the completeness, accuracy and validity of account balances or transactions. Tests of details of balances are used to test specific account balances or transactions. These procedures are used by auditors to obtain evidence about the accuracy and completeness of financial statements, not to satisfy planned control risk. Control risk is managed through the testing of controls and assessing the effectiveness of the systems and processes in place.

Auditors Use Substantive Analytical Procedures and Tests of Details of Balances