Directional testing is important to an auditor because of which of the following factors?
A)Certain accounts are more prone to be misstated by overstatement than others.
B)The auditor must remain organized when conducting an audit.
C)The primary concern of the auditor is the understatement of asset and revenue accounts.
D)It tests for existence and completeness simultaneously.

Question

Quizplus · Accepted Answer

Directional testing is important to an auditor because certain accounts are more prone to be misstated by overstatement than others. This means that the auditor needs to direct their testing efforts towards these accounts to ensure they are not materially misstated.

Directional Testing Is Important to an Auditor Because of Which