If the predominantly substantive approach preliminary audit strategy is used, the planned level of substantive procedures will be:
A) at the lower level.
B) moderate or high.
C) at the higher level.
D) low or very low.

Question

Quizplus · Accepted Answer

When a predominantly substantive approach is used in an audit, it means the auditor plans to rely more on substantive procedures (tests of details of transactions and balances, and analytical procedures) to gather evidence about the financial statements' assertions. This approach is typically adopted when the auditor assesses the internal controls as weak or unreliable, thus necessitating a higher level of substantive testing to gain assurance.

If the Predominantly Substantive Approach Preliminary Audit Strategy Is Used