Tests of Controls and Substantive Tests of Transactions Are an Important

question 44

Multiple Choice

Tests of controls and substantive tests of transactions are an important determinant of the extent of the auditor's use of tests of details of balances.Which of the following is True?

• A)They are likely to be performed prior to the client's end of the fiscal year.
• B)They are likely to eliminate the need for tests of details of balances.
• C)They are likely to have no impact on the planned tests of details of balances.
• D)They are likely to be used only in the audit of internal control.

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Definitions:

Painful Injury

A physical harm or damage to the body that is accompanied by discomfort or distress.

Lost Work

Creative or scholarly work known to have been created but is no longer extant or cannot be found.

Volenti Non Fit Injuria

A legal defense stating that individuals who willingly put themselves in a situation of risk cannot seek compensation for resulting harm.

Icy Sidewalk

A walkway made slippery by a coating of ice, presenting a hazard to pedestrians.