Which of the Following Substantive Tests Would the Auditor Conduct

question 38

Multiple Choice

Which of the following substantive tests would the auditor conduct as a search for contingent liabilities?

• A)select an attribute sample of legal expenses for matching to invoices
• B)select a dollar unit sample of legal expenses for matching to invoices
• C)inspect legal expense invoices and perform a census test of legal expenses
• D)review a sample of legal invoices,looking for appropriate authorization for payment

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Definitions:

Faster

Relates to speed; being quicker in movement, action, or progress as compared to another reference point or unit.

Social Psychological

Relating to how social influences affect individual behavior and mental processes.

Cultural Value

A system of beliefs, moral codes, and customs shared by a society, influencing its members' behavior and attitudes.

Commencement Ceremony

A formal event celebrating the completion of academic studies, marking the awarding of degrees.