If No Exceptions Were Found in the Substantive Tests of Transactions

question 99

Multiple Choice

If no exceptions were found in the substantive tests of transactions,

• A) ARIA would stay the same.
• B) the sample size would stay the same.
• C) ARIA would increase.
• D) the sample size would increase.

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Definitions:

Bank Reconciliation

This process ensures that a company's or individual's accounting records (check register) match up with the bank's records, often revealing discrepancies.

Internal Control System

A set of procedures and mechanisms implemented by a business to ensure the integrity of financial and accounting information, promote accountability, and prevent fraud.

Bank Statement

A bank statement is a summary of financial transactions that have occurred over a given period in a bank account, provided by the bank to the account holder.

Account Balance

The amount of money present in an account, representing the net of credits and debits at a particular point in time.