The Purpose of Substantive Tests of Transactions Is to Determine

question 96

Multiple Choice

The purpose of substantive tests of transactions is to determine whether:

• A) the account balances are accurate.
• B) there are monetary errors or irregularities in the transactions.
• C) the internal control system is working.
• D) the transactions this year are reasonable compared to prior years.

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Definitions:

Reliability

the degree to which the results of a measurement, calculation, or specification can be depended on to be accurate.

Paired Bar Graphs

Graphs that use bars to compare two sets of data side by side.

Correlation

A statistical measure that indicates the extent to which two or more variables fluctuate together.

Condense

To reduce something in volume, size, or extent by eliminating or compressing parts.