Dual purpose tests examine both controls and the reasonableness of dollar amounts.A good example is testing a sample of purchase transactions that occurred throughout the year.

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Dual purpose tests are designed to achieve two objectives simultaneously: to test both controls and substantive procedures. In the case of testing a sample of purchase transactions, controls are tested by examining the authorization, processing, and recording of the purchases, while substantive procedures are used to assess the reasonableness of the recorded dollar amounts.

Dual Purpose Tests Examine Both Controls and the Reasonableness of Dollar