What Procedures Are Designed to Detect Material Misstatements at the Assertion

question 98

Multiple Choice

What procedures are designed to detect material misstatements at the assertion level (namely, tests of details and substantive analytical procedures) ?

• A)Tests of controls
• B)Substantive procedures
• C)Analytical procedures
• D)Risk assessment procedures

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Definitions:

Non-Normal Cash Flows

Cash flow patterns that do not fit the standard or expected periodic inflow or outflow of funds, often seen in irregular income streams.

MIRR

The Modified Internal Rate of Return (MIRR) is a financial measure that adjusts the internal rate of return (IRR) formula to account for different cash flow reinvestment rates.

NPV

Net Present Value, a calculation used to assess the profitability of an investment by summing the present values of its cash inflows and outflows.

Mutually Exclusive

Describes options or decisions that cannot be adopted or pursued at the same time.