A Dual-Purpose Test

question 31

Multiple Choice

A dual-purpose test

• A) Simultaneously tests debits and credits.
• B) Is a procedure completed by both the internal and external auditors.
• C) Is useful to both the entity and the auditor.
• D) Is both a substantive test of transactions and a test of controls.

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Definitions:

Power Company

A business entity that generates, transmits, and distributes electricity to consumers.

Expected Value

The long-run average value of repetitions of an experiment it represents, often considered as the mean of a probability distribution.

Perfect Information

A situation in game theory or economics where all participants have full and equal knowledge of all relevant aspects.

Candy Store

A retail shop specializing in the sale of candies, sweets, and sometimes other confectionery items.