Substantive Procedures That Cannot Be Performed with Generalized Audit Software

question 27

Multiple Choice

Substantive procedures that cannot be performed with generalized audit software include:

• A)Performing certain analytical procedures,such as inventory turnover.
• B)Observing inventory.
• C)Recomputing depreciation.
• D)Selecting audit samples.

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Definitions:

Accounting Equation

A fundamental principle in accounting that states assets equal liabilities plus owner's equity.

Equipment

Physical assets used in the operation of a business, such as machinery, computers, and furniture.

Cash

Represents money or its equivalents (such as checks) that a company possesses and can use for transactions.

Withdrawals

Money or assets taken from a business by its owner(s) for personal use, typically reducing the total equity.