Substantive tests provide the auditor with evidence about whether
A)the account balance is correct for income statement accounts
B)the account balance is correct for balance sheet accounts
C)the transactions recorded in the financial statements are correct for income statement accounts
D)the transactions recorded in the financial statements are correct for balance sheet accounts
E)the transactions recorded in the financial statements are correct for internal control accounts
F)both A and B
G)both B and C
H)both D and E

Question

Quizplus · Accepted Answer

Substantive tests provide evidence about the accuracy of transactions recorded in the financial statements for income statement accounts (choice C) and balance sheet accounts (choice D). Therefore, the correct answer is G, which includes both choices B and C. Choices A, E, and F are incorrect because they only refer to one type of account and do not encompass the full scope of substantive tests. Choice H is also incorrect as it refers to internal control accounts, which are not typically tested using substantive procedures.

Substantive Tests Provide the Auditor with Evidence About Whether