When performing substantive procedures, the key objective is to determine whether:
A) there are immaterial misstatements within the balance being investigated.
B) the client's internal controls are operating effectively.
C) there are material misstatements within the balance being investigated.
D) none of the above.

Question

Quizplus · Accepted Answer

The key objective of substantive procedures is to determine whether there are material misstatements within the balance being investigated. Option A is incorrect as immaterial misstatements are not relevant to the auditor's objective. Option B refers to tests of controls, which are different from substantive procedures. Option D is incorrect as one of the three options must be the objective of substantive procedures.

When Performing Substantive Procedures, the Key Objective Is to Determine