How Does the Extent of Substantive Tests Required to Constitute

question 33

Multiple Choice

How does the extent of substantive tests required to constitute sufficient appropriate audit evidence vary with the auditor's assessment of control risk?

• A)Randomly.
• B)Disproportionately.
• C)Directly.
• D)Inversely.

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Definitions:

Accumulated Depreciation

The total depreciation amount that has been charged against a fixed asset's cost over its useful life to reflect wear and tear.

Equipment

Tangible property owned by a business used in operations, such as machinery, vehicles, or computers.

Balance

The difference between the total debits and credits in an account, or the equilibrium between two opposing forces or aspects.

Revaluation Surplus

This is the increase in value of an asset after it has been appraised again and is recorded as a gain in equity under a company's financials.