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Which of the following is false regarding substantive testing? Analytical procedures are a type of substantive...

Which of the following is false regarding substantive testing?

Analytical procedures are a type of substantive test.

Substantive tests of transactions are used to determine whether all six-transaction related audit objectives have been satisfied for each class of transactions.

Assessed control risk does not affect the planning of substantive procedures.

An exception in a substantive test is a financial statement misstatement.
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Answer #1

Answer: (C) Assessed control risk does not affect the planning of substantive procedures

While dealing with deviations from the application of control procedures, revising the control risk assessment and adjusting substantive procedures based on the results of controls testing is necessary .

Substantive Tests are comprised of Tests of Details and Analytical procedures. A substantive procedure is a process or test that creates conclusive evidence regarding the occurance, completeness, existence, disclosure, rights, or valuation (the transaction related audit objectives) of assets and/or accounts on the financial statements.

An exception in a substantive test is a financial statement misstatement as the Substantive tests are confined to Transaction and Account balances level.

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