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tests of control and substentive procedures both can provide audit evidence. In practice (if you have ever worked in a firm), you will find that the best practice is
1. for items of financial position such as assets, receivables, liabilities, auditors use substentive procedure as relevant way to get audit evidence;
2. for items of comprehensive income such as revenure, costs, auditors always use circle method to walk through, e.g. sales circle to test controls, and also substentive procedures such vouching. |
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