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:

Compound Name

The unique designation of a chemical substance according to rules established by the International Union of Pure and Applied Chemistry (IUPAC).

Compound

A substance formed from two or more elements chemically united in fixed proportions.

Amides

Organic compounds characterized by a carbonyl group attached to a nitrogen atom.

O-Bromobenzoyl Chloride

An organic compound used in the synthesis of other chemical compounds, characterized by a bromine atom attached to the benzoyl chloride group.