Substantive Tests of Balances Are Typically Done on Transactions

question 95

Multiple Choice

Substantive tests of balances are typically done on transactions

• A)for the entire year for a financial statement audit
• B)at the end of the year for a Sarbanes-Oxley financial statement audit
• C)at the end of the year for a Sarbanes-Oxley financial reporting process
• D)of balances on the year-end balance only

Understand the roles and responsibilities of key corporate officers and entities involved in financial reporting and oversight, including the CEO, CFO, audit committee, FASB, and SEC.

Identify and explain the components and importance of the summary of significant accounting policies in financial statements.

Distinguish between the direct and indirect methods of cash flow reporting.

Recognize the impact of net profit margin ratio and total asset turnover ratio on return on assets.

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