Which of the following statements relating to substantive test of transactions, compared to substantive test of balances, is most correct?

1. Substantive test of transactions is essentially the same as substantive tests of balances when the auditor is focused on the Income Statement.
2. Substantive test of transactions is usually a more effective audit approach than substantive test of balances to address detection risk for accuracy, valuation and allocation for non-current assets.

Required: Answer in the space below:

i. Which of the two options (A or B) is correct.

ii. Why the response selected is correct.

ili. Why the response not selected is incorrect.