An auditor’s decision either to apply analytical procedures as substantive tests or to perform substantive tests of transactions and account balances usually is determined by the(1) availability of data aggregated at a high level.(2) relative effectiveness and efficiency of the tests.(3) timing of tests performed after the balance sheet date.(4) auditor’s familiarity with industry trends.

Auditing: A Risk Based-Approach to Conducting a Quality Audit
10th Edition
ISBN:9781305080577
Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Chapter17: Other Services Provided By Audit Firms
Section: Chapter Questions
Problem 36RSCQ
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An auditor’s decision either to apply analytical procedures as substantive tests or to perform substantive tests of transactions and account balances usually is determined by the
(1) availability of data aggregated at a high level.
(2) relative effectiveness and efficiency of the tests.
(3) timing of tests performed after the balance sheet date.
(4) auditor’s familiarity with industry trends.

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