Substantive Tests Must Be Designed to Tests Specific Audit Objectives

question 7

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.
-Test the aging of accounts receivable, discussing long-overdue accounts with the
credit manager.

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

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Definitions:

Urine Production

The physiological process by which kidneys filter blood to remove waste products and excess substances, resulting in the formation of urine.

Micturition Reflex

A reflex leading to the urge to urinate, initiated by the stretching of the bladder.

Urinary Bladder

A muscular sac in the pelvis that stores urine from the kidneys before it is excreted out of the body through urination.

External Urinary Sphincter

A muscular mechanism that controls the retention and release of urine from the bladder.