An auditor's decision either to apply analytical procedures as substantive tests or to perform tests of details usually is determined by the:
A)availability of data aggregated at a high level.
B)relative effectiveness and efficiency of the tests.
C)timing of tests performed after the balance date.
D)auditor's familiarity with industry trends.

Question

Quizplus · Accepted Answer

The decision to apply analytical procedures as substantive tests or to perform tests of details is determined by the relative effectiveness and efficiency of the tests. The auditor must consider which test is most likely to detect material misstatements in a cost-effective and efficient manner. Other factors, such as availability of data and timing of tests, may also be considered, but the primary criterion is the relative effectiveness and efficiency of the tests.

An Auditor's Decision Either to Apply Analytical Procedures as Substantive