When Performing a Substantive Test, _______

question 41

Multiple Choice

When performing a substantive test, _______.

• A)the population consists of a transaction and the account balance to be tested
• B)the population consists of the class of transactions or the account balance to be tested
• C)the auditor should report all immaterial findings to management
• D)the auditor should withdraw from the engagement if any material misstatements are located

---

Definitions:

Master Budget

The total of all individual budgets within an organization, projecting all major financial activities over a period.

Flexible Budget

An adaptable budget configured to change with differing levels of activity or volume.

Return on Investment

A performance measure used to evaluate the efficiency or profitability of an investment or compare the efficiency of several different investments.

Variable Costs

Variable costs are expenses that change in proportion to the activity of a business, such as sales volumes.