In the context of an audit of financial statements, substantive tests are audit procedures that
A) may be eliminated under certain conditions.
B) are designed to discover significant subsequent events.
C) are designed to test for dollar misstatements.
D) will increase proportionately with the auditor's reliance on internal control.

Question

Quizplus · Accepted Answer

Substantive tests are designed to test for dollar misstatements and are used by auditors to obtain evidence to support the financial statements. These tests are used to detect material misstatements in the financial statements and therefore provide a reasonable level of assurance that the financial statements are free from material misstatement. While the other answer choices may be relevant to an audit, they do not accurately describe what substantive tests are designed to accomplish.

In the Context of an Audit of Financial Statements, Substantive