Which of the following statements relating to the conduct of substantive tests is most correct?

1. The nature, timing and extent of substantive procedures impacts the level of audit risk achieved.
2. The primary purpose of auditor's substantive testing is to prevent material misstatements in the financial report presented to the auditor by management.

Required: Answer in the space below:

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

il. Why the response selected is correct.

ili. Why the response not selected is incorrect.