A controls reliance audit includes substantive procedures and does not include tests of controls.

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Quizplus · Accepted Answer

A controls reliance audit involves testing of controls to assess the effectiveness of the internal control system in reducing the risk of material misstatements. Substantive procedures are performed as a backup measure in case the control procedures are found to be inadequate or ineffective. Therefore, a controls reliance audit includes tests of controls as well as substantive procedures.

A Controls Reliance Audit Includes Substantive Procedures and Does Not