A comprehensive audit plan includes which component?

A comprehensive audit plan is an essential part of the audit process, detailing the audit strategy and the procedures to be performed. Substantive testing procedures are a critical component of this plan because they involve the direct verification of financial statement assertions through various tests. This includes testing transactions, account balances, and disclosures to substantiate the accuracy and completeness of the financial information presented.

Substantive testing provides the evidence needed to form an opinion on whether the financial statements are free from material misstatement, thus directly impacting the quality and reliability of the audit. This focus on substantive testing methods ensures that auditors can effectively assess the risks associated with the audit and determine the necessary steps to obtain sufficient appropriate audit evidence.

In contrast, the other components listed do not directly belong to the framework of an audit plan. The statement of stockholders’ equity relates to financial reporting, estimates of future earnings pertain to forecasting rather than auditing, and marketing strategies for audits would generally not form a part of the audit procedures themselves but rather concern the business development aspect of an auditing firm.