Substantive Tests of Costs and Expenses That Are Always Performed

question 4

Multiple Choice

Substantive tests of costs and expenses that are always performed include:

• A) reviewing interim financial reports and investigating fluctuations or the absence of expected changes.
• B) comparing the current year's expenses to the prior years actual and the current years budgeted amounts.
• C) obtaining detailed analysis of selected costs and expense accounts and trace the details to the source data.
• D) All of the above

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Definitions:

Property

Items or assets owned by individuals or entities, including real estate and personal possessions.

Presumed Revoked

The assumption that a legal document, like a will or license, is no longer valid or in effect without direct evidence.

Electrical Fire

A type of fire caused by electrical failures or malfunctions, such as faulty wiring, overloaded circuits, or defective electrical devices.

Consideration

An item of worth provided by each party in a contract, motivating them to engage in the deal for the purpose of exchanging reciprocal actions.