Substantive Tests Must Be Designed to Tests Specific Audit Objectives

question 52

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.
-Observe procedures, including segregation of duties, for approving sales orders.

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

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Definitions:

Intuition Correctness

The degree to which an individual's intuitive judgments or gut feelings align with accurate or effective decisions.

Psychological Theories

Frameworks or models used to understand, predict, and manage human behavior and mental processes.

Observed Facts

Information or data that have been noticed and recorded through observation, serving as a basis for reasoning or further investigation.

Scientific Observations

The act of systematically noticing and recording phenomena or data in the context of scientific research.