In an audit of financial statements, substantive tests are audit procedures that __

Related MCQs

• The nature, timing and extent of substantive procedures is related to assessed level of control risk
• What would most effectively describe the risk of incorrect acceptance in terms of substantive audit testing?
• Which of the following statements is most closely associated with analytical procedure applied at substantive stage?
• For all audits of financial statements made in accordance with AAS14, the use of analytical procedures is at the discretion of the auditor in which stage?
• The client changed method of depreciation from straight line to written down value method. This has been disclosed as a note to the financial statements. It has an immaterial effect on the current financial statements. It is expected, however, that the change will have a significant effect on future periods. Which of the following option should the auditor express?
• What would most appropriately describe the risk of incorrect rejection in terms of substantive testing?
• Analytical procedures issued in the planning stage of an audit, generally
• The inventory consists of about one per cent of all assets. The client has imposed restriction on auditor to prohibit observation of stock take. The auditor cannot apply alternate audit procedures.
• An analysis of fixed assets account has revealed possibility of unrecorded sale of plant and machinery. Which of the following audit procedures may be adopted to discover it?
• Analytical procedures are least likely to be use in the audit of –