A procedure designed to test for monetary misstatements directly affecting the correctness of financial statement balances is a
A) test of controls.
B) substantive test.
C) test of attributes.
D) monetary unit sampling test.

Question

Quizplus · Accepted Answer

Substantive tests are designed to detect monetary misstatements directly affecting the correctness of financial statement balances. Test of controls and test of attributes are designed to test the effectiveness of the client's internal controls. Monetary unit sampling test is a type of substantive test, but it specifically refers to a statistical sampling method used in auditing.

A Procedure Designed to Test for Monetary Misstatements Directly Affecting