Which One of the Following Statements Regarding the Five Types

question 23

Multiple Choice

Which one of the following statements regarding the five types of audit tests in the sales and collection cycle is NOT correct?

• A) Substantive tests of transactions are used both to test the effectiveness of internal controls and to test the dollar amount of these transactions.
• B) Tests of details of balances are used to verify ending account balances.
• C) Analytical procedures are used to test the relationships among the account balances in the cycle, both to each other and to prior years.
• D) Tests of controls are used primarily to test the efficiency of internal controls over the five classes of transactions.

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Definitions:

Emergencies

Sudden, unexpected events that require immediate action, often to prevent a dangerous or unpleasant outcome.

Emotional Contagion

The occurrence in which the emotions and behaviors of one individual directly induce comparable emotions and behaviors in others.

Mimic

To mimic is to imitate or copy someone's actions, speech, or mannerisms, often for learning or adaptation purposes.

Nonverbal Behaviors

Communication without words, including body language, facial expressions, gestures, and other physical cues.