Substantive Tests Must Be Designed to Tests Specific Audit Objectives

question 51

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.
-Reperform check on accuracy of sales invoice pricing.

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

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Definitions:

System of Equations

A set of equations with the same variables, where the solution must satisfy all equations simultaneously.

Hyperbola

A type of smooth curve lying in a plane, consisting of two branches, which are mirror images of each other, and which open away from each other.

Center and Vertices

Key elements in geometry, specifically for ellipses and hyperbolas, where the center is the midpoint of the vertices (the major points).

Method of Substitution

A strategy for solving systems of equations by replacing variables with equivalent expressions to simplify the system.