A Substantive Test of Transactions to Test the Completeness Assertion

question 56

Multiple Choice

A substantive test of transactions to test the completeness assertion includes

• A) Tracing a sample of time sheets to the payroll register.
• B) Testing a sample of payroll checks for the presence of an authorized time sheet.
• C) Testing postings to the payroll register for a sample of payroll checks.
• D) Recomputing the accuracy of a sample of payroll checks.

---

Definitions:

Automatic Stabilizers

Economic policies and programs, such as unemployment insurance and taxation, that automatically adjust with economic conditions to stabilize income and spending.

Recession

An interval of momentary economic contraction characterized by decreased commercial and industrial operations, commonly signaled by a reduction in Gross Domestic Product over two back-to-back quarters.

Government Budget Deficit

The financial situation that occurs when a government's expenditures exceed its revenues in a given fiscal year.

Automatic Stabilizer

Economic policies and programs, like unemployment insurance and progressive taxation, designed to automatically adjust to changes in economic conditions to stabilize the economy.