The auditor uses sampling for substantive tests of balances and for substantive tests of transactions to determine
A)whether the financial statements accounts associated with the account balance or class of transactions are materially misstated
B)whether the financial statements are materially misstated
C)whether the balance sheet accounts associated with the account balance or class of transactions are materially misstated
D)whether the income statement accounts associated with the account balance or class of transactions are materially misstated

Question

Quizplus · Accepted Answer

The purpose of using sampling for substantive tests of balances and transactions is to determine whether the accounts associated with the balance or class of transaction are materially misstated. This is to ensure that the financial statements are accurately presented and not materially misstated. Therefore, choice A is the best answer. Choices B, C, and D are incorrect because they do not accurately reflect the purpose of sampling for substantive tests.

The Auditor Uses Sampling for Substantive Tests of Balances and for Substantive