A Procedure Designed to Test for Dollar Errors or Irregularities

question 69

Multiple Choice

A procedure designed to test for dollar errors or irregularities directly affecting the correctness of financial statement balances is a(n)

• A)substantive test.
• B)analytical test.
• C)test of controls.
• D)definition of dollar-unit sampling.

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Definitions:

Secured Transactions

involve agreements in which the borrower provides the lender a security interest in personal property as collateral for a loan.

Personal Property

Any property that is not real property, including movable objects, vehicles, furniture, and intellectual property.

Security Agreement

A legal document that provides a lender a security interest in a specific asset or property pledged as collateral for a loan.

Collateral

Assets pledged by a borrower to secure a loan or credit, which can be seized by the lender if the borrower defaults.