Why does the auditor generally follow a substantive strategy when auditing long-term debt and capital accounts?
All Answers
total answers (1)
total answers (1)
Accounting
- A substantive audit strategy is normally followed when auditing the long-term debt and capital accounts because, although the number of transactions is smaller, each transaction is usually material.
- Thus, it is normally more cost-effective to conduct substantive tests of the transactions that compose the account balance.
need an explanation for this answer? contact us directly to get an explanation for this answer