The auditor might choose a primarily substantive approach when auditing assertions that are affected by a high degree of subjectivity or involve highly complex transactions.

Question

Quizplus · Accepted Answer

A primarily substantive approach is often chosen for assertions that are highly subjective or involve complex transactions because it is difficult to rely on internal controls to mitigate the risks associated with these areas. Substantive procedures directly test the transactions and balances to gather audit evidence.

The Auditor Might Choose a primarily Substantive Approach When Auditing