Directional Testing Creates Audit Efficiency by Taking Advantage of the Double-Entry

question 34

Multiple Choice

Directional testing creates audit efficiency by taking advantage of the double-entry bookkeeping system.Which of the following is not a primary reason for this effect?

• A)misstatement of some accounts are more likely to occur in one direction than the other.
• B)increase the persuasiveness of the evidence.
• C)provides evidence on a complementary set of accounts.
• D)some assertions are directional by nature.

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Definitions:

Economic System

A description of how a particular society distributes its resources to produce goods and services.

Social System

An organized set of interrelated structures that establishes how society operates, encompassing institutions, norms, and roles that shape social interactions.

Economics

The study of how resources are distributed for the production of goods and services within a social system.