Tests of Controls Are Conducted to Establish That

question 55

Multiple Choice

Tests of controls are conducted to establish that:

• A)there are no material misstatements in the financial statements
• B)controls operate effectively
• C)controls operate consistently throughout the period
• D)both a and c

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Definitions:

Hypothesis

A proposed explanation made on the basis of limited evidence as a starting point for further investigation.

Testable

Capable of being tested or subjected to examination and verification.

Upper Limb Length

The measurement from the top of the shoulder to the tip of the fingers, reflecting the dimensions of the arm and hand.

Body Height

The length of a human body from the bottom of the feet to the top of the head when standing upright.