An auditor's decision either to apply analytical procedures as substantive procedures or to perform tests of transactions and account balances usually is determined by
A) Availability of data aggregated at a high level.
B) Relative effectiveness and efficiency of the tests.
C) Timing of tests performed after the balance sheet date.
D) Auditor's familiarity with industry trends.

Question

Quizplus · Accepted Answer

The decision to apply analytical procedures as substantive procedures or to perform tests of transactions and account balances is usually determined by the relative effectiveness and efficiency of the tests. The auditor should consider which tests are the most effective and efficient in achieving the audit objectives. The availability of data aggregated at a high level, timing of tests performed after the balance sheet date, and auditor familiarity with industry trends may be considerations, but they are not the primary determinants of the choice between analytical procedures and tests of transactions and account balances.

An Auditor's Decision Either to Apply Analytical Procedures as Substantive