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CMA Intermediate · Corporate Accounting and Auditing · Audit Engagement, Audit Program, Audit Documentation and Audit Evidence

Under SA 500, further audit procedures comprise which of the following?

Further audit procedures comprise tests of controls, when required by the standards or chosen by the auditor, and substantive procedures, which include both tests of details and substantive analytical procedures. Risk assessment procedures are separate from further audit procedures.

  1. ATests of controls, and substantive procedures including tests of details and substantive analytical proceduresCorrect
  2. BRisk assessment procedures and tests of controls only
  3. CSubstantive analytical procedures only, with tests of details excluded
  4. DInquiry of management and observation only

Explanation

SA 500 describes further audit procedures as tests of controls (when required by the SAs or when the auditor chooses) and substantive procedures, which include tests of details and substantive analytical procedures. Risk assessment procedures are a separate category, so the second option is wrong.

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