If the Tests of Controls Confirm the Auditor's Preliminary Evaluation

question 39

True/False

If the tests of controls confirm the auditor's preliminary evaluation of controls,the planned substantive audit procedures are not modified.

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Definitions:

Drawing Account

An account that tracks amounts withdrawn from a business by its owners for personal use, which reduces the owner's equity.

Capital Account

An account on a nation's balance of payments that records all transactions related to asset changes, including investments and loans.

Liabilities

Financial obligations or debts owed by a business to outsiders, which are required to be settled in the future.

Drawing

A withdrawal made by an owner from the business for personal use.