In Practice, Extent of Testing Applies

question 29

Multiple Choice

In practice, extent of testing applies:

• A) exclusively to the number of items tested.
• B) to both the number of items tested and the number of tests performed.
• C) exclusively to the number of substantive tests performed.
• D) to both the number of items tested and the nature of the tests performed.
• E) to both the nature of items tested and the number of tests performed.

---

Definitions:

Equity Method

An accounting technique used by a company to record its investment in another company when it has significant influence but does not have full control over that company.

Fair Value

An estimate of the price at which an asset or liability could be traded in an orderly transaction between market participants at the measurement date.