Substantive tests must be designed to tests specific audit objectives.
REQUIRED: For the following specific audit procedures, indicate the assertion that is being tested. Use the following letters, placing your response in the space provideD.
-Reperform check on accuracy of sales invoice pricing.
A)Existence or occurrence
B)Completeness
C)Valuation or allocation
D)Rights and obligations
E)Presentation and disclosure

Question

Quizplus · Accepted Answer

Reperforming checks on the accuracy of sales invoice pricing directly tests the valuation or allocation assertion, ensuring that transactions are recorded at the appropriate amounts.

Substantive Tests Must Be Designed to Tests Specific Audit Objectives