Question

Auditors should design a written audit program so that:

A.All material transactions will be included in substantive testing.
B.Substantive testing performed prior to year end will be minimized.
C.The procedures will achieve specific audit objectives related to specific management assertions.
D.Each account balance will be tested under either a substantive test or a test of controls.

Answer 1

Auditors should design a written audit program to include all material transactions in substantive testing, achieve specific audit objectives, and test all account balances.

Step-by-step explanation:

Auditors should design a written audit program so that:

1. All material transactions will be included in substantive testing.
2. The procedures will achieve specific audit objectives related to specific management assertions.
3. Each account balance will be tested under either a substantive test or a test of controls.

By designing a written audit program with these objectives in mind, auditors can ensure that they thoroughly test all material transactions, achieve the desired audit objectives, and test all account balances in an appropriate manner.