2.What are the major differences between a substantive strategy and a reliance strategy when theauditor considers internal control in planning an audit? Show Get answer to your question and much more 3.Why must the auditor obtain an understanding of internal control? Get answer to your question and much more What are the major differences between a substantive strategy and a reliancestrategy when the auditor considers internal control in planning an audit? Get answer to your question and much more 6-6Why must the auditor obtain an understanding of internal control? Get answer to your question and much more 6-7What is meant by the concept of reasonable assurance in terms of internal control?What are the inherent limitations of internal control? Get answer to your question and much more Messier, William, Steven Glover, and Douglas Prawitt. Auditing & Assurance Services. Ninth ed. N.p.:McGraw-Hill, 2014. Print. What is Reliance strategy?Strategy. Driving growth, value, innovation and transformation in society. Reliance is pursuing its strategy to grow, by leveraging its existing know-how and asset base and investing in opportunities strategic to its existing businesses and those of the future.
What is reliance on controls approach?Reliance on controls that is supported by sufficient and appropriate audit evidence allows the auditor to assess control risk at less than the maximum, which results in a lower assessed risk of material misstatement.
What factors should the auditor consider when substantive procedures are to be completed at an interim date?The auditor should consider the following factors when substantive tests are to be completed at an interim date: The level of control risk. Changing business conditions or circumstances that may cause management to misstate financial statements in the remaining period.
What is a wholly substantive audit approach?The substantive procedures approach
This is also referred to as the vouching approach or the direct verification approach. In this approach, audit resources are targeted on testing large volumes of transactions and account balances without any particular focus on specified areas of the financial statements.
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