Sources of information used for determining substantive procedures include which of the following?
A)knowledge of client's business and industry.
B)assessment of risk of material misstatement.
C)results of analytical procedures.
D)all of the above.

Question

Quizplus · Accepted Answer

All of the options listed (A, B, and C) are sources of information used for determining substantive procedures. Knowledge of the client's business and industry is important in identifying potential risks and areas where material misstatements could occur. Assessing the risk of material misstatement helps auditors to focus on areas of greatest risk in designing substantive procedures. Analytical procedures also provide important insights into potential areas of concern or risk. Therefore, all of these sources are important in determining the scope and nature of substantive procedures.

Sources of Information Used for Determining Substantive Procedures Include Which