A Procedure Designed to Test for Monetary Misstatements Directly Affecting

question 51

Multiple Choice

A procedure designed to test for monetary misstatements directly affecting the correctness of financial statement balances is a

• A) test of controls.
• B) substantive test.
• C) test of attributes.
• D) monetary unit sampling test.

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Definitions:

State Income Tax Refund

State income tax refund is the money returned to a taxpayer from the state government if they overpaid their state income taxes.

1099-G

A tax form used in the United States to report certain government payments, like state tax refunds.

Taxpayer

An individual or entity that is obligated to pay taxes to a federal, state, or municipal government.

Dependent Care Assistance Plan

A benefit plan that allows employees to use pre-tax earnings to pay for qualified dependent care expenses, such as child care.