Substantive Audit Procedures Include

question 57

Multiple Choice

Substantive audit procedures include

• A) detailed tests of balances.
• B) analytical procedures.
• C) detailed tests of transactions.
• D) all of the above

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Definitions:

Cash Basis

An accounting method where revenues and expenses are recorded when cash is received or paid, not when the obligation is incurred.

Comparability

An accounting principle that ensures financial statements can be compared between periods and across companies.

Financial Statements

Consolidated reports that summarize the financial performance, position, and cash flows of a business over a specified period.

Adjusting Entries

Journal entries made in accounting to adjust income and expense accounts so they reflect the true financial position of a business.