An Exception in a Substantive Test of Transactions Provides Only

question 13

True/False

An exception in a substantive test of transactions provides only an indication of the likelihood of monetary misstatements in the financial statements, because substantive tests of transactions do not reveal whether monetary misstatements have actually occurred.

---

Definitions:

Office Supplies

Consumable items used in an office setting, such as paper, pens, and staplers, necessary for completing office tasks and operations.

Weekly Salary

A fixed amount of money paid to an employee on a weekly basis as compensation for performed work.

Utility Bill

A bill for services provided by a utility company, such as electricity, water, natural gas, or telecommunications.

Owner's Equity

The residual interest in the assets of a business after deducting liabilities, representing the capital owned by the owners or shareholders.