Substantive Tests Must Be Designed to Tests Specific Audit Objectives

question 38

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.
-Inspect major new additions to plant assets during the current period.

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

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Definitions:

Direct Exporting

Selling products directly to consumers or retailers in another country, without the use of an intermediary.

Overseas Marketing

The practice of promoting and selling products or services in foreign countries beyond the company's home market.

Revenue Tariff

A duty imposed on imported goods primarily to generate income for the government rather than to restrict imports or protect domestic industries.

Venetian Glass

A type of glass made in Venice, Italy, renowned for its craftsmanship, color, and intricate designs.