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I cant quite differentiate between Auditors response and substantive procedures. What is the difference between them ?
Response is also a way of getting evidence about risks and procedures are about assertions i understand. But both of them looks similar in answers
Another query , when an asset is disposed off , what change happen to dep policy. i saw it as an audit risk , that the dep policy might not have changed
Auditor’s response is basically a recommendation on what the auditor will use to verify that the financial statements or procedures is accurate.
I.E. company received loan from bank (audit risk) and response will be to ask of management whether they have received the loan and agree to the financial statement.
Substantive procedure is used to perform tests on the internal controls within the organization.
IE to confirm inventory balance select a sample of inventory and trace to inventory records at the year end and ensure that no raw materials at the pre year end have been excluded.
I hope this helps
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