Substantive Tests Must Be Designed to Tests Specific Audit Objectives

question 79

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.
-Select high dollar items from the perpetual inventory records for
inspection/counting during the physical inventory.

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

---

Definitions:

Delusional Disorder

A mental disorder characterized by the presence of delusions, which are fixed false beliefs that contradict reality, without the presence of other major psychiatric symptoms.

Not Criminally Responsible

A legal defense where an individual is considered not responsible for a crime due to a mental disorder at the time of the act.

Mental Disorder

Conditions that affect mood, thinking, and behavior, significantly impacting daily life and functioning.

Insanity Designation

A legal terminology referring to the determination that an individual was not responsible for their criminal actions due to underlying mental health issues at the time of the offense.