Which of the Following Audit Tests Form the Basis for an Auditor's

question 38

Multiple Choice

Which of the following audit tests form the basis for an auditor's report on internal control over financial reporting?

• A)Analytical procedures
• B)Tests of transactions
• C)Tests of controls
• D)Tests of details of balances

---

Definitions:

Payroll Tax

A tax imposed on employers and employees, calculated as a percentage of the wages that employers pay their staff.

Federal Receipts

Revenue collected by the federal government, generally through taxes and fees.

Marginal Tax Rate

The Marginal Tax Rate is the tax rate applied to an individual's or corporation's last dollar of income, showing the fraction of additional income that is paid in tax.

Average Tax Rate

The average tax rate is the percentage of total income that an individual or corporation pays in taxes, calculated by dividing total tax paid by total income.