Which of the following is a substantive test of transactions?
A)Review personnel policies.
B)Account for a sequence of payroll cheques.
C)Reconcile the disbursements in the payroll journal with the disbursements on the payroll bank statement.
D)Examine printouts of transactions rejected by the computer as having invalid employee numbers.

Question

Quizplus · Accepted Answer

Substantive tests of transactions are procedures that auditors use to detect material misstatements in the financial statements. Reconciling disbursements in the payroll journal with the payroll bank statement is a substantive test as it verifies the accuracy and completeness of recorded transactions.

Which of the Following Is a Substantive Test of Transactions