In a Financial Report Audit, Substantive Tests Are Audit Procedures

question 48

Multiple Choice

In a financial report audit, substantive tests are audit procedures that:

• A) a re designed to discover significant subsequent events.
• B) may be either tests of transactions, tests of balances, tests of disclosure or analytical procedures.
• C) will decrease proportionately with the auditor's assessed level of control risk.
• D) may be eliminated under certain conditions.

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Definitions:

P-value

A measure in statistical hypothesis testing representing the probability of obtaining test results at least as extreme as the results actually observed, under the assumption that the null hypothesis is true.

Test Statistic

A value calculated from sample data that is used in a hypothesis test to decide whether to reject the null hypothesis.

P-value

The probability of observing test results at least as extreme as the results actually observed, under the assumption that the null hypothesis is correct.

Tenure

The period or duration a person holds a particular status, position, or occupation, often used in the context of employment or property ownership.