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Auditing

Lecture 7 & 8

Audit risk, inherent and control risk, internal controls, substantive procedures, and audit sampling.

Question 27 of 57

What are the four steps in designing a substantive analytical procedure (SAP)?

Pick one: press 1-4 on your keyboard or click an option.
A

Determine suitability, evaluate reliability of data, develop an expectation, determine acceptable difference

B

Identify fraud, assess going concern, review board minutes, obtain representation letter

C

Test controls, inspect documents, confirm balances, recalculate

D

Select sample, test sample, project errors, issue opinion