The Main Difference Between Substantive Testing and Controls Testing Is

question 30

Multiple Choice

The main difference between substantive testing and controls testing is:

• A)Substantive testing verifies whether information is correct, whereas control tests determine whether the information is managed under a system that promotes correctness.
• B)Substantive testing determines whether the information is managed under a system that promotes correctness, whereas control testing verifies whether information is correct.
• C)Substantive testing goes further in depth into the internal controls of a company, whereas controls testing just identifies which controls need further review.
• D)Substantive testing identifies which controls need further review, whereas controls testing goes further in depth into the internal controls of a company.

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Definitions:

Trade Deficit

A situation in which a country's imports exceed its exports, resulting in a negative balance of trade.

Negative Merchandise Trade Balance

A situation where a country's imports of goods exceed its exports of goods, leading to a trade deficit in physical goods.

Services Trade Balance

The services trade balance refers to the difference between a country's exports and imports of services.

Free Trade

A policy by which a government does not discriminate against imports or interfere with exports by applying tariffs (to imports) or subsidies (to exports) or quotas.