Which of the Following Are Examples of Substantive Procedures in Auditing

question 37

Multiple Choice

Which of the following are examples of substantive procedures in auditing revenue that are always performed?

• A) testing the cut-off of revenues
• B) comparing the monthly income statements to budget and investigating any unexpected fluctuations
• C) both a and b
• D) none of the above

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Definitions:

Maturities

The dates on which financial obligations or debt instruments (such as bonds, loans, or other forms of securities) are due to be paid off.

Unfunded Liabilities

Obligations for which sufficient assets have not been set aside and are not currently funded by investment.

Notes

Short for promissory notes, these are debt instruments whereby one party promises in writing to pay a determinate sum of money to the other at a specified date or upon demand.

Ask Price

The lowest price a seller is willing to accept for a security or commodity.