Which of the following factors affect the substantive procedures performed in an audit?
A) The subjectivity of accounting process.
B) Size of the account.
C) Effectiveness of the relevant controls.
D) All of the above affect the substantive procedure that are performed.

Question

Quizplus · Accepted Answer

All of the factors listed (subjectivity of accounting process, size of the account, and effectiveness of controls) can have an impact on the level and type of substantive procedures that an auditor performs during an audit. The subjectivity of the accounting process may indicate a higher risk of material misstatements or fraud, requiring more extensive substantive testing. Larger accounts may require more testing due to their higher significance to the financial statements. The effectiveness of controls can also impact the extent of substantive procedures, with a stronger control environment potentially reducing the level of testing needed. Therefore, all of these factors are important considerations in determining the appropriate substantive procedures to perform in an audit.

Which of the Following Factors Affect the Substantive Procedures Performed