Substantive Tests Must Be Designed to Tests Specific Audit Objectives

question 45

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.
-Obtain the market value of short term securities as of the balance sheet date from
published records.

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

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Definitions:

Decoding

The process of interpreting and understanding the meaning of a message that has been communicated.

Complex Process

A procedure or task that involves multiple steps, variables, or elements, making it difficult to understand or execute.

Communication Model

A theoretical framework that describes the process of exchanging information, including elements such as sender, message, medium, receiver, and feedback.

Ethical Decision

A choice made based on moral principles and values, considering the impact on all stakeholders involved.