In the Context of an Audit of Financial Statements, Substantive

question 40

Multiple Choice

In the context of an audit of financial statements, substantive tests are audit procedures that:

• A) assess the detection risk of each audit objective.
• B) assess the control risk for each audit objective.
• C) test whether transactions are correct.
• D) test for dollar misstatements.

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Definitions:

Constitutional

Related to, governed by, or in accordance with a constitution, which is the fundamental principles or established precedents guiding a state or organization.

Constitutions

Legal documents or sets of principles that outline the fundamental laws governing a country or other organization, specifying how the entity is to be governed and defining the rights of its citizens or members.

American Citizens

Individuals born in the United States or who have obtained citizenship through naturalization, granting them certain rights, duties, and privileges.

U.S. Constitution

The supreme law of the United States, establishing the framework of the national government and the rights of the citizens.