Substantive Tests Must Be Designed to Tests Specific Audit Objectives

question 45

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.
-Obtain the market value of short term securities as of the balance sheet date from
published records.

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

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Definitions:

Bureaucratic Culture

A type of organizational culture characterized by formal procedures, hierarchical structure, and clear division of responsibilities.

Standard Operating Procedures

Detailed, written instructions designed to achieve uniformity of the performance of a specific function or operation within an organization.

Organizational Culture

Refers to the shared values, beliefs, and practices that shape how work is done within an organization.

Harley-Davidson

An American motorcycle manufacturer known for its heavyweight motorcycles designed for cruising on highways.