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:

Physical Inventories

The process of counting by hand all physical stock items in a company to verify records and reports.