Which of the following is intended to detect deviations from prescribed Accounting Department procedures?
A) Substantive tests specified by a standardised audit program.
B) Tests of controls designed specifically for the client.
C) Analytical tests as designed in the industry audit guide.
D) Computerised analytical tests tailored for the configuration of CIS equipment in use.

Question

Quizplus · Accepted Answer

Tests of controls are designed specifically for the client's procedures and are intended to identify when deviations occur. Substantive tests (A) are intended to identify errors or misstatements in account balances or transactions. Analytical tests (C) are used to compare financial information to industry standards or prior periods to identify significant fluctuations or anomalies. Computerized analytical tests (D) are not necessarily specific to detecting deviations from prescribed procedures.

Which of the Following Is Intended to Detect Deviations from Prescribed