Substantive tests of transactions are typically done on transactions
A)for the entire year for a financial statement audit
B)at the end of the year for a Sarbanes-Oxley financial statement audit
C)at the end of the year for a Sarbanes-Oxley financial reporting process
D)of balances for the entire year

Question

Quizplus · Accepted Answer

Substantive tests of transactions are performed to obtain audit evidence about the completeness, accuracy, and validity of the data produced by the accounting system. In a financial statement audit, these tests typically cover transactions for the entire year to ensure that the financial statements are free from material misstatement.

Substantive Tests of Transactions Are Typically Done on Transactions