What Are Substantive Procedures

question 72

Multiple Choice

What are substantive procedures?

• A)Audit procedures designed to detect material misstatements at the assertion level
• B)Audit procedures designed to aid testing controls
• C)Audit procedures that are applied when internal controls are not functioning as designed
• D)Audit procedures applied to gather appropriate relevant and reliable data

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Definitions:

Interest Expense

The cost incurred by an entity for borrowed funds, typically presented as an expense on the income statement.

Amortization

The process of spreading the cost of an intangible asset over its useful life.

Accrued Interest

Accrued Interest is the interest that has accumulated on a loan or bond since the last interest payment was made but has not yet been paid out.