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The Results of Tests of Controls and Tests of Details

question 90

True/False

The results of tests of controls and tests of details of balances affect the design of substantive tests of transactions.


Definitions:

Subsidiary Ledger

A subsidiary ledger is a detailed ledger containing individual accounts with a common characteristic, which is summarized and presented in a single account in the general ledger.

Control Account

A summary account in the general ledger that consolidates and reflects the total amount of transactions recorded in subsidiary ledgers for easier oversight and reconciliation.

Invoice Price

The initial quoted price on an invoice prior to deductions such as discounts, allowances, or rebates.

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