A dual purpose test simultaneously:
A)Addresses two different accounts.
B)Functions as a substantive test and as a test of controls.
C)Functions as an analytical procedure and a substantive test.
D)Substantiates an ending balance and the transactions making up the balance.

Question

Quizplus · Accepted Answer

A dual purpose test that functions as both a substantive test and a test of controls allows the auditor to obtain evidence regarding the accuracy of the account balances (substantive test) as well as the effectiveness of the internal controls in place (test of controls). This approach reduces the amount of testing necessary and saves time and resources. Therefore, option B is the best choice.

A Dual Purpose Test Simultaneously