In the context of an audit of financial statements, substantive procedures are audit procedures that:
A)may be eliminated under certain conditions.
B)are primarily designed to discover significant subsequent events.
C)may be either tests of details of transactions, tests of details of account balances, or analytical procedures.
D)will increase proportionately with an increase in the auditor's reliance on internal control.

Question

Quizplus · Accepted Answer

Substantive procedures are audit procedures that may take the form of tests of details of transactions, tests of details of account balances, or analytical procedures. These procedures are designed to obtain direct and substantive evidence about material misstatements in the financial statements, and they cannot be eliminated under any circumstances. The level of substantive procedures to be performed by the auditor depends on the assessed risks of material misstatement and the auditor's judgement about the effectiveness of internal controls. Subsequent events may be addressed through other audit procedures, but they are not the primary focus of substantive procedures.

In the Context of an Audit of Financial Statements, Substantive