Question: (5) Substantive procedures examine whether there are material misstatements or errors in specific classes of transactions, account balances, and disclosures. Auditors considerations for the design

(5) Substantive procedures examine whether there are material misstatements or errors in specific classes of transactions, account balances, and disclosures. Auditors considerations for the design of substantive procedures involve the (1) nature, (2) timing, and (3) extent of the substantive procedures. Which of the following consists of the elements that are related to the term nature?

(a) The availability of information, specific audit objectives, cost-effectiveness, nature and composition of classes of transactions and account balances.

(b) The acceptable level of detection risk and control risk, and the relevance to specific risk.

(c) The assessed risks of material misstatements and the relative advantages and disadvantages among different types of substantive procedures.

(d) The relationship among the substantive procedures to be performed, the billable hours and the audit fees to be charged

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