A number of substantive tests of details involve _______.
A)matching information in the accounting records with information on underlying documents
B)matching information in the accounting records with information evidence provided by the internal auditors
C)matching information in the accounting records with evidence provided by the client's management
D)making a determination on the effectiveness of the client's system of internal control

Question

Quizplus · Accepted Answer

Substantive tests of details involve verifying the accuracy and completeness of individual transactions, account balances, and disclosures. One way to achieve this is by matching information in the accounting records with information on underlying documents such as invoices, receipts, and bank statements. Option B, matching information in the accounting records with evidence provided by the internal auditors, is not a substantive test but rather a test of controls. Option C, matching information in the accounting records with evidence provided by the client's management, is not a specific test but rather a general principle of obtaining audit evidence. Option D pertains to testing the effectiveness of internal controls, which is not a substantive test of details.

A Number of Substantive Tests of Details Involve _______