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what is meant by audit approach??=audit procedure?
what is the technique to answer the question of substantive procedure and test of control??
Autid approach refers to whther the audit will place high reliance on test of controls with limited substantive tests or whether the audit will proceeed with full substantive tests.
Audit procedure is a specific process that the auditor uses. For example, inspecting documents to make sure they are authorised (ToC) or performing analytical procedures (substantive).
If the question asks you to describe ToC that you would use, you have to be testing that a control operates. Substantive doesn’t ;look at controls, it directly ‘attacks’ figures on the FS at the assertion level. Eg a receivables circularisation.
Thank you very much:))so the word-Analytical procedure,Enquire,Inspect,Observation,Recalculation, Reperformance is used for both TOC and SP right?
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