When performing substantive procedures,the key objective is to determine whether:
A)there are material misstatements within the balance being investigated.
B)there are immaterial misstatements within the balance being investigated.
C)the client's internal controls are operating effectively.
D)None of the above

Question

Quizplus · Accepted Answer

The key objective of substantive procedures is to determine whether there are material misstatements within the balance being investigated. Material misstatements are those that could potentially affect the users' decisions. Therefore, it is essential to identify and correct them before issuing the financial statements. Immateria misstatements, on the other hand, are less important and do not require corrective action. Checking the effectiveness of internal controls is a separate objective during the audit process that falls under the assessment of control risk.

When Performing Substantive Procedures,the Key Objective Is to Determine Whether