In the context of an audit of financial statements, substantive procedures are audit procedures that:
A. are primarily designed to discover significant subsequent events.
B. may be eliminated under certain conditions.
C. may be either tests of details of transactions, tests of details of account balances, or analytical procedures.
D. will increase proportionately with an increase in the auditor's reliance on internal control.
Answer: C
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The more management levels through which a message passes
A. the more important the message is. B. the higher the chance the message will become external. C. the more informal the organization. D. the more distorted the message may become. E. the more disorganized the organization.
Which of the following is/are true?
a. Cost is the economic sacrifice made to acquire goods or services. b. When the good or service acquired has reliably measurable future benefits to a firm, the cost is an asset. c. When the firm consumes the good or service, the cost is an expense. d. All of the above are true. e. None of the above are true.
Why is it a good strategy to segment a potential market?
What will be an ideal response?
Which of the following statements is true when a company is considering whether to make or buy a component of a product that it currently manufactures?
A) If none of the current fixed overhead is avoidable when outsourcing, the product should be made internally. B) If the current fixed overhead is avoidable when outsourcing, the product should be outsourced. C) If the relevant costs to make internally are greater than the relevant costs of outsourcing, the product should be outsourced. D) If the cost of outsourcing is greater than the direct materials cost of making internally, the product should continue to be made internally.