Substantive Tests Must Be Designed to Tests Specific Audit Objectives

question 38

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.
-Inspect major new additions to plant assets during the current period.

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

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Definitions:

Pluralist Theory

The political theory that society is composed of multiple groups and centers of power, which compete and negotiate with each other to influence policymaking and outcomes.

Interest Groups

Organizations that attempt to influence public policy and government decisions in favor of their members' or supporters' interests.

Monarch

A sovereign head of state, especially a king, queen, or emperor, who typically inherits the position by birth.

Republic

A form of government in which power is held by the people and their elected representatives, and which has an elected or nominated president rather than a monarch.