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. This is because material misstatements can have a significant impact on the financial statements and the users who rely on them. A) is not correct because even immaterial misstatements could potentially impact the financial statements. B) is related to testing internal controls and is not the objective of substantive procedures. D) is not a valid choice because there is a correct answer.

When Performing Substantive Procedures, the Key Objective Is to Determine