While Substantive Procedures May Support the Accuracy of Underlying Records,these

question 3

Multiple Choice

While substantive procedures may support the accuracy of underlying records,these tests frequently provide no affirmative evidence of segregation of duties because

• A) Substantive procedures rarely guarantee the accuracy of the records if only a sample of the transactions has been tested.
• B) The records may be accurate even though they are maintained by persons having incompatible functions.
• C) Substantive procedures relate to the entire period under audit, but compliance tests ordinarily are confined to the period during which the auditor is on the client's premises.
• D) Many computerized procedures leave no audit trail of who performed them, so substantive procedures may necessarily be limited to inquiries and observation of office personnel.