Shown Below (1 Through 5) Are the Five Types of Tests

question 67

Multiple Choice

Shown below (1 through 5) are the five types of tests which auditors use to determine whether financial statements are fairly stated. Which three are substantive tests?
1) risk assessment procedures
2) tests of controls
3) tests of transactions
4) analytical procedures
5) tests of details of balances

• A) 1, 2, and 3.
• B) 3, 4, and 5.
• C) 2, 3, and 5.
• D) 2, 3, and 4.

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Definitions:

Modern Capitalism

An economic system characterized by private or corporate ownership of capital goods, investments determined by private decision, and prices, production, and the distribution of goods that are primarily determined by competition in a free market.

Constant Change

Refers to the ongoing process of evolution and adaptation in various contexts, such as technology, society, and business environments.

Corrosion of Character

The gradual loss or deterioration of individual integrity and ethical values due to prolonged exposure to certain environments, particularly oppressive corporate cultures.

Global Political

Pertaining to politics and international relations on a global scale, often involving issues of governance, power, and diplomacy between nations.