Dual Purpose Audit Tests Are Useful as Which of the Following

question 96

Multiple Choice

Dual purpose audit tests are useful as which of the following types of tests?

• A)tests of controls
• B)tests of account balances.
• C)tests of controls or tests of account balances
• D)tests of controls and tests of account balances.

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Definitions:

General Ledger

A complete record of all financial transactions made over the life of a company.

Asset Accounts

Accounts on a company's balance sheet that represent valuable resources controlled by the company and that have future economic value.

Liability Accounts

Accounts on a company's balance sheet that represent what the company owes to others, such as loans, accounts payable, mortgages, and accrued expenses.

Journal Entries

The recording of financial transactions into the accounting records, specifying the accounts affected by those transactions.