Test of controls
What are the situations when substantive procedures cannot provide sufficient appropriate audit evidence? And suppose those items have a deviation from controls which the auditor wants to rely upon, he cannot perform substantive procedures so will that result in a significant matter?
Situations (i) beyond entity's control - books destroyed or with govt. authorities (ii) due to auditor's timing of work - auditor appointed after physical counting date (iii) management's restrictions - no external confirmation, no observation of physical counting process Auditor in such cases can give a disclaimer or qualified report depending on the overall assessment of risk of material misstatements