When an Auditor Performs Tests of Details of Balances, the Concern

question 127

Multiple Choice

When an auditor performs tests of details of balances, the concern is determining:

• A) both the effectiveness of controls and the monetary correctness of the transactions.
• B) whether the deviation rate in the population is sufficiently low to justify reducing substantive testing.
• C) whether the account balance being audited is fairly stated.
• D) all of the above

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Definitions:

Low-Paying Nations

Countries characterized by significantly lower wage levels compared to the global average, often associated with high levels of poverty and inequality.

High-Paying Nations

Countries where workers generally receive high wages due to strong economies or high standards of living.

Capitalist Incomes

The earnings derived from capital investments, such as profits, rental income, and interest, within a capitalist economic system.

Backflows

The reverse movement of water, contaminants, or other substances into the potable water supply due to a change in pressure.