What are the major differences between a substantive strategy and a reliance strategy when the auditor considers when the auditor considers internal control in planning an audit?
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total answers (1)
total answers (1)
Accounting
- Substantive strategy- the auditor has decided not to rely on the entity's controls and instead use substantive procedures as the main source of evidence about the assertions in the financial statements.
- Reliance Strategy- the auditor intends to rely on the entity's controls. If a reliance strategy is followed, the auditor may need a more detailed understanding of internal control to develop a preliminary or "planned" assessment of control risk.
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