A factor that auditors consider when determining the type of substantive procedure to use is _______.
A)the assessed level of risk for the assertion
B)the assessed level of risk for the control
C)the cost of the procedure, and if management will be able to afford it
D)the recommendations of management

Question

Quizplus · Accepted Answer

The auditors consider the assessed level of risk for the assertion as it helps them determine the nature, timing, and extent of the substantive procedure to be used. This ensures that the audit procedures are tailored to the level of risk of material misstatement in the financial statements, making it easier for auditors to detect any material misstatements. The assessed level of risk for the control, cost of the procedure, and the recommendations of management are not the primary factors for determining the type of substantive procedure to use.

A Factor That Auditors Consider When Determining the Type of Substantive