Directional Testing Is Important to an Auditor Because of Which

question 6

Multiple Choice

Directional testing is important to an auditor because of which of the following factors?

• A)Certain accounts are more prone to be misstated by overstatement than others.
• B)The auditor must remain organized when conducting an audit.
• C)The primary concern of the auditor is the understatement of asset and revenue accounts.
• D)It tests for existence and completeness simultaneously.

---

Definitions:

Payment Option

Various methods available for making payments, such as cash, credit card, digital wallets, or bank transfers.

Credit Cards

Payment cards issued by financial institutions that allow users to borrow funds for purchases, subject to repayment.

Voucher Check

A check attached to a voucher that provides details about the reason for the payment and the account(s) to be charged.

Insurance Companies

Businesses that provide coverage for various risks including health, property, and life, in exchange for premiums.