n audit procedure designed to evaluate the operating effectiveness of controls in preventing or detecting and correcting, material misstatements is known as: a. a test of controls b. a test of details c. a dual purpose test d. ratio analysis

n audit procedure designed to evaluate the operating effectiveness of controls in preventing or detecting and correcting, material misstatements is known as: a. a test of controls b. a test of details c. a dual purpose test d. ratio analysis

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

An audit procedure designed to evaluate the operating effectiveness of controls in preventing or detecting and correcting, material misstatements is known as:

a. a test of controls

b. a test of details

c. a dual purpose test

d. ratio analysis

Definition Definition Methods and techniques used by the auditor to gather the appropriate evidence so that a true and fair judgment can be made on the quality of the financial statements of the client. Audit procedures are developed after determining audit objectives, scope, approach, and risk assessment.

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