Substantive Tests Must Be Designed to Tests Specific Audit Objectives

question 62

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 vendor accounts with high activity during the year, and low balance at
year-end for confirmation.

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

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Definitions:

Frequency-Dependent Selection

An evolutionary process by which the fitness of a phenotype or allele depends on its frequency relative to other phenotypes or alleles in a given population.

Phenotype

The set of observable characteristics or traits of an organism that results from the interaction of its genotype with the environment.

Common Phenotype

The set of observable characteristics or traits shared by individuals within the same population.

Neutral Variation

Variation that does not appear to confer any selective advantage or disadvantage to the organism.