Shown Below (1 Through 5) Are the Five Types of Tests

question 114

Multiple Choice

Shown below (1 through 5) are the five types of tests which auditors use to determine whether financial statements are fairly stated. Which three are substantive tests?
1) risk assessment procedures
2) tests of controls
3) substantive tests of transactions
4) substantive analytical procedures
5) tests of details of balances

• A) 1, 2, and 3
• B) 3, 4, and 5
• C) 2, 3, and 5
• D) 2, 3, and 4

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Definitions:

Supply Chain Processes

Various steps involved in producing and delivering a product or service, from raw materials to delivery to the end consumer.

Customer Order Arrival

The time when a customer's order is received by a company.

Order Communication

The methods and processes used to place, confirm, and track orders between buyers and suppliers.

Due Date Fulfillment

The ability of a company to meet the promised delivery time frames for customer orders.