Final answer:
The extent of substantive procedures refers to the scope and thoroughness of audit tests conducted to detect material misstatements, not to management's agreement with them.
Step-by-step explanation:
The extent of substantive procedures in an audit context refers to the depth and thoroughness with which these procedures are conducted, not the extent to which management agrees with them. Substantive procedures are specific audit tests that auditors perform to detect material misstatements in the financial statements. They include tests on the details of transactions and balances, tests on the existence, ownership, valuation of assets and liabilities, and the completeness and occurrence of transactions.
These procedures aim to gather audit evidence that is reliable and sufficient to form an opinion on the financial statements. Auditors determine the extent of substantive procedures based on factors such as the risk of material misstatement, the size of the transaction or balance, and the effectiveness of the entity's internal controls.
It's essential for auditors to plan and perform these procedures independent of management's influence while considering the due process. These procedures directly relate to ensuring substantive due process, allowing auditors to provide an objective opinion on the financial statements. In essence, the extent signifies the scope and quantity of substantive procedures necessary to achieve the audit's objectives.