You are auditing Rodgers and Company. After performing substantive analytical procedures you conclude that, for the accounts tested, the client's balance appears reasonable. This may indicate that:
A) details test of balances can be eliminated for those accounts.
B) certain test of balances procedures may be eliminated for those accounts.
C) control tests may be eliminated for those accounts.
D) control tests may be reduced for those accounts.

Question

Quizplus · Accepted Answer

Substantive analytical procedures provide an overall idea of the reasonableness of the account balances. If the balance appears reasonable, certain test of balances procedures may be eliminated for those accounts, but details test of balances and control tests cannot be eliminated solely based on substantive analytical procedures.

You Are Auditing Rodgers and Company