'Dual-Purpose Tests' Involve

question 28

Multiple Choice

'Dual-purpose tests' involve:

• 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:

Futures Contract

A standardized legal agreement to buy or sell something at a predetermined price at a specified future date.

Wilshire 5000

A metric assessing the performance of all equity securities based in the U.S. for which price information is easily accessible.

DJIA

Stands for Dow Jones Industrial Average, which is a stock market index that measures the stock performance of 30 large companies listed on stock exchanges in the United States.

DAX

The Deutscher Aktienindex, a major stock market index consisting of the 30 major German blue chip companies trading on the Frankfurt Stock Exchange.