Tests of Controls in the Finance and Investment Cycle

question 30

Multiple Choice

Tests of controls in the finance and investment cycle

• A) Normally focus on tests of transactions.
• B) Primarily involve observing physical security of assets.
• C) Typically amount to inquiries and observations related to management involvement.
• D) Can significantly reduce the extent of substantive tests.

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Definitions:

Subject

The topic or main focus of a conversation, document, or study.

Large Group

A significant number of individuals gathered together, typically classified as more than a handful, often for a specific purpose or event.

Respondents

Individuals who answer or reply to a survey, questionnaire, or other means of inquiry.

Working Purpose Statement

A statement that outlines the main goals or objectives of a project or piece of work, guiding the focus and direction.