 In this presentation, we will discuss a substantive and reliance strategy. In other words, we will be comparing and contrasting a substantive strategy and a reliance strategy. So once we have an understanding of the internal controls, the auditor can then decide on following a substantive strategy or a reliance strategy. So we have an understanding of internal controls, then our question is, what type of strategy are we going to follow? If we're going to follow a substantive strategy, that means that the strategy sets control risks high for some or all assertions because of one or all of the following factors. When thinking about substantive strategies, it's easy to kind of get the concept down sometimes, but still mix up which way things are going or and when we think about test questions, when we think about something like a control risk being high or control risk being low, what's that mean for substantive strategies? It's easy to get kind of turned around on that. So when we think about a substantive strategy, you're thinking about basically the inline type of strategies, meaning we're going to be relying on kind of the ground level work, the kind of more of the grunt work where we're typically going to be needing a lot more of it. The substantive tests, you could think about the types of tests being out there, we're going to be out there at the business where the auditors were out there at the business, we're asking them to pull files, give me some invoices, give me some bills, we're going to be testing this, tracing this, tracking this information, a lot of work on the substantive testing. So if we have a substantive strategy, we're relying basically on the more work strategy us actually going out there and doing more digging into the operations of the organization. So the reason we would have a substantive strategy is because we're not reliant on internal controls. For some reason, we've decided that the internal controls are something that we couldn't rely on. And so if we can't rely on the internal controls, we're going to be doing more substantive, more actual work type testing. Now, once you have that down, you need to basically understand that that means that control risk has been set high. So we actually set the control risk high. What does that mean? So you recall that the control risk is going to be one of our risk factors. If we say the control risk is high, then that means that there's a high risk that the internal controls that were set up by management will not catch a material misstatement. So that means so the control risks being high, in other words, means that we think that the internal controls are weak for whatever reason, and therefore we can't rely on the internal controls. And so we're going to skip more testing of the internal controls and go straight to the more difficult or longer testing of the substantive type testing actually going out to the client, picking up those files, giving me some bills, giving me some invoices, let me trace these and test these and track these back. So that's going to be the information.