The Auditor May Perform Substantive Tests of Transactions for Revenue

question 26

Multiple Choice

The auditor may perform substantive tests of transactions for revenue as part of the audit of the internal controls.The auditor does this by:

• A)testing controls that have a monetary value
• B)using dual-purpose tests
• C)using tests on how revenue is recorded in the system
• D)selecting a sample of balances and performing tests on them

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Definitions:

Compound

A chemical compound is a substance composed of two or more different elements that are chemically bonded together in a fixed ratio, distinguished by its chemical composition and properties.

Thiol Proton

The hydrogen atom attached to the sulfur atom in a thiol group, characterized by its ability to be acidic and participate in hydrogen bonding.

Acidity

A measure of the concentration of hydrogen ions in a solution, often associated with the degree to which a substance is able to donate a proton.

Phenol

An aromatic compound consisting of a benzene ring bonded to a hydroxyl group (-OH).