Substantive Tests Must Be Designed to Tests Specific Audit Objectives

question 74

Multiple Choice

Substantive tests must be designed to tests specific audit objectives.
REQUIRED: For the following specific audit procedures, indicate the assertion that is being tested. Use the following letters, placing your response in the space provideD.
-Examine consignment agreements.

• A)Existence or occurrence
• B)Completeness
• C)Valuation or allocation
• D)Rights and obligations
• E)Presentation and disclosure

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Definitions:

Abstract Thinking

The ability to think about objects, principles, and ideas that are not physically present. It involves processing complex concepts, understanding hypothetical situations, and solving problems creatively.

Cognitive Capacities

The range of brain-based skills necessary for acquiring knowledge, including perception, memory, reasoning, and problem-solving.

Risk-taking Behavior

Engaging in activities that have the potential for harmful physical or emotional outcomes, often in pursuit of a perceived reward.

Biological Irreversibility

The concept that certain biological events (e.g., death, maturation) cannot be reversed or undone.