overview of substantive procedures

Question 1

______risk is the only component within the auditors direct influence and which is essentially set by specifying the nature timing and extent of the auditors substantive procedures

Answer 1

detection

Question 2

Know the 2 categories of “substantive” audit procedures (and the 2 categories of “tests of details”).

Answer 2

two types of substantive procedures are
analytical procedures 
test of details
     test of transactions
     test of ending balances

Question 3

the 4 considerations that determine the efficiency and effectiveness of analytical procedures that are used for substantive purposes.

Answer 3

the effectiveness and efficiency of substantive analytical procedures are

nature of the assertion

plausibility and predictability of the relationship

availability and reliability of the data used

precision of the expectation

Question 4

test of ending balances

test of transactions

Answer 4

verifying the clients recorded amounts by directly testing the composition making up the ending account balances

verifying the clients recorded amounts by testing those relative few debits and credits (the transactions) that caused the account balances to change from last years audited balance to this years