Every organization has certain objectives of its business and usually some rules and procedures are established to perform various tasks to achieve these objectives. The main purpose behind making the rules and establishing various procedures is to safeguard the business assets. For this purpose, the internal control system is developed and implemented in the organization to achieve its objectives in an effective and efficient way along with ensuring assets safety.
ISA states that, the auditor should obtain sufficient appropriate audit evidence through substantive procedures to check the effectiveness of the internal control system thus enabling the auditor to draw reasonable conclusions there from on which he bases his opinion regarding the truth and fairness of the financial information while substantive procedures mean audit tests / procedures performed to obtain audit evidence to detect material misstatements in the financial statements. If internal controls are strong then auditor may reduce or may not use the substantive procedures but here the question arises that can an auditor ignore substantive procedures (under certain circumstances) for a material account balance if related internal controls are assessed to be very strong? Justify your answer with logical reasons.
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