Question

Which of the following is intended to detect deviations from prescribed controls?

1) Substantive procedures specified by a standardized audit program.
2) Tests of controls designed specifically for the client.
3) Analytical procedures as set forth in an industry audit guide.
4) Computerized analytical procedures tailored for the configuration of the computer equipment in use.

Answer 1

Tests of controls designed specifically for the client.

Step-by-step explanation:

The correct answer is option 2) Tests of controls designed specifically for the client.

Tests of controls are procedures performed by auditors to evaluate the effectiveness of internal controls in preventing or detecting material misstatements in the financial statements. These tests are designed based on the specific control environment of the client.

Substantive procedures specified by a standardized audit program (option 1) are procedures performed to obtain evidence regarding the completeness, accuracy, and validity of the data produced by the accounting system.

Analytical procedures as set forth in an industry audit guide (option 3) are procedures that involve comparing financial information with expectations developed by the auditor.

Computerized analytical procedures tailored for the configuration of the computer equipment in use (option 4) are procedures performed using specialized software to analyze large volumes of data efficiently.