Which of the Following Assessments Are Affected by Substantive Tests

question 41

Multiple Choice

Which of the following assessments are affected by substantive tests of transactions?

• A) both acceptable audit risk and control risk
• B) both control risk and planned detection risk
• C) both inherent risk and control risk
• D) both inherent risk and planned detection risk

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Definitions:

Taxes

Compulsory financial charges or levies imposed by a government on individuals, corporations, and other entities to fund government spending.

Trading Range

The spread of prices at which a stock or other security trades over a certain period of time.

Shareholder Wealth

The overall value of an individual's or entity's shares in a company, often measured by stock prices and dividends.

Share Repurchase Agreements

Contracts in which a company agrees to buy back its own shares from shareholders, often to reduce the number of outstanding shares and increase the value of remaining shares.