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:

Attribution Theory

A theory that focuses on how individuals interpret events and how this relates to their thinking and behavior.

Situational Factors

External influences that can affect an individual's behavior and decisions in a given context.

Dispositional Factors

Internal characteristics or attributes of individuals that influence their behavior and attitudes.

Self-serving Bias

A cognitive bias that leads individuals to attribute their successes to internal factors and their failures to external factors.