Expense accounts analysis is closely related to tests of controls and substantive tests of transactions. The major difference is:
A) that one emphasizes transactions and the other emphasizes amounts.
B) the degree of concentration on an individual account.
C) the difference in the types of underlying documentation which is examined.
D) the use or nonuse of cutoff tests.

Question

Quizplus · Accepted Answer

Expense accounts analysis focuses more on individual accounts, while tests of controls and substantive tests of transactions focus on the processes and transactions as a whole.

Expense Accounts Analysis Is Closely Related to Tests of Controls