Substantive Tests Must Be Designed to Tests Specific Audit Objectives

question 79

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.
-Select high dollar items from the perpetual inventory records for
inspection/counting during the physical inventory.

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

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Definitions:

Hypothesis

A suggested reason for an occurrence, established as an initial phase for more detailed examination.

Testable Hypothesis

A statement that makes a prediction about the outcome of a study, which can be supported or refuted through experimental or observational evidence.

Ethical Consideration

Principles and guidelines that help ensure the rights, safety, and well-being of research participants are protected.

Torture

The act of causing severe physical or psychological pain or suffering to a person, typically for punishment, coercion, or obtaining information.