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 are performed to obtain audit evidence to detect material misstatements in the financial statements. They may include tests of details of transactions, tests of details of account balances, or analytical procedures. They are not designed to discover subsequent events or to be eliminated under certain conditions. The extent of substantive procedures may vary depending on the assessed level of control risk, but they are not directly linked to the auditor's reliance on internal control.

In the Context of an Audit of Financial Statements,substantive Procedures