Question

An audit strategy can take _______.

1) a reliance on procedures approach, a substantive approach, or a combination of both
2) a reliance on controls approach, a substantive approach, or a combination of both
3) neither a reliance on controls approach, nor a substantive approach
4) an approach whereby only internal control is audited

Answer 1

An audit strategy can take a combination of both a reliance on procedures approach and a substantive approach.

Step-by-step explanation:

An audit strategy can take a combination of both a reliance on procedures approach and a substantive approach. This approach allows auditors to gather evidence from internal controls as well as substantive testing of account balances and transactions. By combining these approaches, auditors can have a more comprehensive understanding of the financial statements.