What types of audit tests are used to gather audit evidence?

The correct choice highlights the primary categories of audit tests that auditors employ to gather sufficient and appropriate evidence during the audit process. Substantive tests refer to procedures designed to verify the accuracy of financial statements and assess the completeness of accounting records. They focus on the details of transactions and balances, allowing auditors to draw conclusions about the integrity of financial information.

Tests of controls, on the other hand, assess the effectiveness of an organization’s internal controls in preventing or detecting fraud and errors. By evaluating how well these controls function, auditors can gain insight into the reliability of the financial reporting process. A well-functioning system of internal controls can reduce the level of substantive testing required since it provides assurance that the transactions processed by the system are likely to be accurate.

Both types of tests are essential for forming an opinion on the financial statements and ensuring compliance with applicable standards and regulations. By employing both substantive tests and tests of controls, auditors can effectively gather a robust body of evidence that supports their conclusions.

Other options do not represent the primary types of audit tests used in gathering evidence in a structured audit approach. Qualitative and quantitative analysis emphasize different methodologies rather than specific testing mechanisms. Internal and external evaluations do not distinctly categorize the types of tests but rather refer to the perspectives