Which of the following arranges the general types of audit tests in the order they are normally performed in an audit?
A)Substantive procedures, tests of controls, and risk assessment procedures.
B)Substantive procedures, risk assessment procedures, and tests of controls.
C)Risk assessment procedures, tests of controls, and substantive procedures.
D)Risk assessment procedures, substantive procedures, and tests of controls.

Question

Quizplus · Accepted Answer

The general order of audit tests is as follows: first, auditors perform risk assessment procedures to identify the areas with the highest risk of material misstatement. Once these areas are identified, tests of controls are performed to evaluate the effectiveness of the client's internal control system. Finally, substantive procedures are performed to gather evidence about the accuracy and completeness of account balances and transactions. Therefore, the correct order is: risk assessment procedures, tests of controls, and substantive procedures, which is option C.

Which of the Following Arranges the General Types of Audit