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

Under SA 500, the procedures for obtaining audit evidence may be used in which way?

The procedures may be used as risk assessment procedures, tests of controls or substantive procedures, depending on the context in which the auditor applies them. They are not restricted to one category or one stage of the audit.

  1. AAs risk assessment procedures, tests of controls or substantive procedures, depending on the context in which they are appliedCorrect
  2. BOnly as substantive procedures
  3. COnly as risk assessment procedures at the planning stage
  4. DOnly as tests of controls after the balance sheet date

Explanation

SA 500 states that the described procedures may be used as risk assessment procedures, tests of controls or substantive procedures depending on the context in which the auditor applies them. So the same procedure type is not confined to a single category or stage.

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