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Author Question: Auditors perform test of controls and substantive tests of transactions for several reasons. Which ... (Read 59 times)

llesku

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Question 1

The most important difference among tests of controls, substantive tests of transactions, and tests of details of balances lies in what the auditor wants to measure. Explain what each type of test attempts to measure.

Question 2

Auditors perform test of controls and substantive tests of transactions for several reasons. Which of the following is not one of those reasons?
◦ for larger public company audits, to conclude the control is operating effectively
◦ to reduce assessed control risk and thereby reduce tests of details of balances
◦ to determine whether the exception rate in the population is sufficiently low
◦ to use rate of occurrence tests in the tests of details of balances


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Marked as best answer by llesku on Aug 21, 2022

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llesku

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Reply 2 on: Aug 21, 2022
Great answer, keep it coming :)


jackie

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Reply 3 on: Yesterday
Excellent

 

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