When Substantive Tests Performed Identify Errors or Exceptions,the Auditor's First

question 30

Multiple Choice

When substantive tests performed identify errors or exceptions,the auditor's first response is to:

• A)understand why the exception or error has arisen.
• B)qualify the audit report.
• C)report the client to ASIC.
• D)None of the above

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Definitions:

Forged Check

A check that has been illegally modified or created to defraud, including altering the amount, making or endorsing without authorization.

Electronic Funds Transfer System

A system that allows the transfer of money between accounts via electronic signals or computer networks, without the need for physical exchange of money.

Wire Transfers

Electronic methods of moving funds from one bank account to another, either within the same institution or across different institutions.

Point-of-sale Terminals

Electronic devices used in retail locations to process card payments, managing sales and customer transactions directly at the time and place of purchase.