A substantive strategy differs from a reliance strategy in that a substantive strategy includes
A) Increased implementation of detailed tests of transactions and balances.
B) Extra tests of controls.
C) Increased emphasis on verbal representations from management.
D) Setting control risk at a minimum level.

Question

Quizplus · Accepted Answer

A substantive strategy involves an increased focus on detailed testing of transactions and balances, as opposed to a reliance strategy which places more emphasis on testing controls. Extra tests of controls and verbal representations from management may still be present in a substantive strategy, but the key difference is the increased focus on substantive testing. Setting control risk at a minimum level is not necessarily specific to either strategy.

A Substantive Strategy Differs from a Reliance Strategy in That