Question

If auditors adopt a predominantly substantive approach to the audit, do they have to consider and test the client's internal controls?

1) Yes, auditors must consider and test the client's internal controls
2) No, auditors do not need to consider and test the client's internal controls
3) It depends on the specific circumstances of the audit
4) Cannot be determined based on the information provided

Answer 1

If auditors adopt a predominantly substantive approach to the audit, they may not need to consider and test the client's internal controls. However, in some cases, they may still need to, depending on the specific circumstances of the audit.

Step-by-step explanation:

In auditors adopt a predominantly substantive approach to the audit, they generally focus on testing the account balances and transactions rather than the internal controls of the client. This means that they may not need to consider and test the client's internal controls.

However, in some cases, auditors may still need to consider and test the client's internal controls, depending on the specific circumstances of the audit. For example, if the client has a history of material weaknesses in their internal controls or if there are significant risks of material misstatements, auditors may need to perform additional testing of internal controls.

In summary, the need to consider and test the client's internal controls depends on the specific circumstances of the audit and the risk assessment conducted by the auditors.