There are effectively two audit strategies available to an auditor:

1. the predominantly substantive approach, where the auditor relies on substantive procedures for audit evidence

2.

the lower assessed level of control risk approach (sometimes called the 'combined approach'), where the auditor obtains some evidence from testing controls (where the internal controls are considered to be effective) followed by a reduced level of substantive testing.

Describe and explain these two approaches.

Include in your answer the decisions an auditor must make when deciding which of these approaches to follow.