Ch. 9 - Approach

Question 1

Two approach options:

Answer 1

1. purely substantive

2. combined

Question 2

Substantive Procedures are:

Answer 2

tests of details and analytical procedures

Question 3

Why use a substantive approach

Answer 3

1. When controls are not effective (control risk is high)

2. when transactions are few and significant

Question 4

why to use a combined approach

Answer 4

1. controls are effective

2. high volume of low dollar value transcations