Which of the following tests is intended to detect deviations from prescribed Accounting Department procedures?
A)Substantive tests specified by a standardised audit program.
B)Tests of controls designed specifically for the client.
C)Analytical tests as designed in the industry audit guide.
D)Computerised analytical tests tailored for the configuration of IT equipment in use.

Question

Quizplus · Accepted Answer

Tests of controls are specifically designed to evaluate the effectiveness of internal control procedures, including those in the Accounting Department. Substantive tests specified by a standardised audit program are intended to provide evidence about the accuracy and completeness of the financial statements. Analytical tests as designed in the industry audit guide may be used to identify unusual transactions or patterns in financial data, but are not specific to Accounting Department procedures. Computerised analytical tests tailored for the configuration of IT equipment in use may be used to evaluate the performance or security of IT systems, but are not relevant to detecting deviations from Accounting Department procedures.

Which of the Following Tests Is Intended to Detect Deviations