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What type of audit procedure is performed by auditors to test transaction details and account balances for monetary misstatements?

AControl Tests
BSubstantive Procedures
CRisk Assessment
DAnalytical Review

Explanation

• Substantive Procedures are audit tests executed to detect material misstatements at the assertion level in transaction balances or account disclosures.
• Substantive procedures include test of details (reconciliations, physical inspection) and substantive analytical procedures.
• Tests of controls evaluate the operational effectiveness of internal accounting controls.

Exam Relevance
  • Topic: Auditing
  • Subtopic: Audit Procedures
Submitted by: mcqstutor Team More Finance & Accounting MCQs →

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