'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:

Recognizes Dividends

The process by which a company records the payment of dividends to its shareholders in its financial statements.

Reported Net Income

The net income that a company reports in its financial statements, which represents the company's total earnings after expenses, taxes, and costs are subtracted from total revenue.

Total Proceeds

The entire sum of money received from a transaction or series of transactions, often before any deductions or expenses are taken into account.

Sustaining Stock Price

Efforts or strategies employed by a corporation to maintain or support the current market price of its shares.