Question

Which of the following is an important consideration when deciding the nature of tests to use in a financial statement audit?

Tests of details typically provide a low level of assurance.

The use of tests of controls should be considered without regard to the level of assurance required.

Analytical procedures are an inefficient means of obtaining assurance.

The procedures to be applied on a particular engagement are a matter of the auditor’s professional judgment.

Answer 1

Dear student...correct answer is The procedures to be applied on a particular engagement are a matter of the auditor’s professional judgment.

The procedures to be applied on a particular engagement are a matter of the auditor's professional judgment. (According to GAAS, the auditor should exercise professional judgment and maintain professional skepticism during the planning and performance of the audit. Professional judgment applies training, knowledge, and experience to making informed decisions about the actions that are appropriate in an audit.