For the income statement,
A)the auditor gathers evidence to support the transactions recorded in the accounts for 12 months
B)the auditor gathers evidence to determine whether the account balance on one day of the year,the end of the year,is correct
C)the tests that the auditor uses to gather evidence are called substantive tests of transactions
D)the tests that the auditor uses to gather evidence are called substantive tests of balances
E)the tests that the auditor uses to gather evidence are called substantive tests of controls
F)both A and C

Question

Quizplus · Accepted Answer

The income statement covers the transactions and activities over the entire 12-month period, so the auditor needs to gather evidence to support those transactions. These tests are referred to as substantive tests of transactions. Therefore, option A and C are correct.

For the Income Statement