Final answer:
The use of inspection of documentation for proper approval of accounting estimates serves as both a risk assessment and substantive procedure in an audit.
Step-by-step explanation:
The correct option that can be used as both a risk assessment procedure and a substantive procedure for the audit of accounting estimates is option b) Inspect documentation for proper approval of the accounting estimate. Inspecting documentation helps the auditor to assess the risk by understanding the internal controls in place for estimate approvals (risk assessment), and it serves as a verification of the recorded estimate amounts by checking documented evidence (substantive procedure).
This dual-purpose approach allows the auditor to leverage their work efficiently, as both the risk assessment and substantive testing phases of the audit can benefit from examining the same documentation. While gaining an understanding (option a), inquiring about methods and assumptions (option d), and inspecting post-year-end events (option c) could also be part of risk assessment and substantive procedures, the explicit inspection for proper approval directly ties an estimate to its method of authorization and can therefore act as both a check on control and on the accuracy of the estimate itself.