AAA – L3 – SA – Q2.5 – Audit Strategies

Identifying non-audit strategy.

Question

Which of the following is NOT an audit strategy?
A Substantive approach
B Directional testing approach
C Statement of financial position approach
D Business risk approach

Answer

Explanation:
Directional testing is an approach to substantive testing, not a distinct audit strategy. Substantive approach, statement of financial position approach, and business risk approach are recognized audit strategies, focusing on substantive procedures, balance sheet items, or business risks, respectively. Thus, B is the correct answer.

Tags: Audit Strategy, Business Risk, ICAG, Substantive Approach
Level: Level 3

Topic: The audit approach

Uploader: Salamat Hamid