'Dual-Purpose Tests' Is a Term Used For

question 56

Multiple Choice

'Dual-purpose tests' is a term used for:

• A)tests of controls that address both the design of the control procedures and their operating effectiveness.
• B)tests of transactions that include substantive procedures as well as tests of controls.
• C)tests that address both balances and transaction classes.
• D)tests performed because of client expectations as well as for gathering audit evidence.

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Definitions:

Net Income

The total profit of a company after accounting for all costs and expenses, including taxes and operational expenses.

Accrued Revenues

Revenues that have been earned but not yet received in cash or recorded at the statement date.

Accounting Period

A specific period of time for which financial accounts are prepared, commonly a year or a quarter.

Salaries Expense

Represents the total amount paid to employees as wages or salaries before any deductions, recognized in the accounting period in which employees' services are utilized.