With a Substantive Audit Strategy,what Is an Auditor Likely to Do

question 34

Multiple Choice

With a substantive audit strategy,what is an auditor likely to do?

• A)Extensively tests internal controls.
• B)Limit the testing of internal controls.
• C)Not assess control risks.
• D)Issue an adverse opinion on the financial statements.

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Definitions:

Unpaid Voucher File

A file or record keeping system that tracks invoices and vouchers that have not yet been paid by the company.

Sales Discounts

Reductions in the price of goods sold, offered to customers as an incentive to either prompt payment or increase sales volume.

Vouchers Payable

Liabilities or debts owed by a company for purchases made on credit, documented by vouchers.

Gross Method

An accounting practice where purchases are recorded at their full invoice amount without deducting any purchase discounts.