In Terms of an Audit, Define Substantive Strategy and Reliance

question 68

Essay

In terms of an audit, define substantive strategy and reliance strategy. Include in your definition how the different strategies relate to internal control. Which strategy would best relate to a lower control risk?

---

Definitions:

Resource Inputs

The resources (such as labor, capital, and materials) that are required for the production process or to perform services.

Product Outputs

Product outputs refer to the goods or services produced as a result of a company's manufacturing or service processes.

Networked

Connected to a series of points or nodes in a system, especially in the context of computers and telecommunications, allowing for communication and exchange of data.

Real-Time Communication

The exchange of information instantly or with negligible delay, allowing for immediate receipt and response.