Tests Performed by Auditors That Examine Evidence for Both Control

question 14

Multiple Choice

Tests performed by auditors that examine evidence for both control attributes and monetary misstatements are known as:

• A)Standard-purpose tests.
• B)Multi-function tests.
• C)Dual-purpose tests.
• D)Substantive tests.

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Definitions:

Disclosure

Disclosure involves the act of making new or important information known, especially about the financial or operational state of a company.

Current Assets

Assets that are expected to be converted into cash, sold or consumed within one year or within the normal operating cycle of the business, whichever is longer.

Current Ratio

A financial ratio that indicates how well a company can cover its short-term liabilities with its present assets.

Current Liabilities

Short-term financial obligations that are due within one year or within the company's operating cycle, whichever is longer.