Tobias Appel is trying to ensure that he can review controls over purchasing transactions. In addition he would like to substantiate the dollar amounts he is reviewing. What type of
Procedures can he perform that will provide evidence as to whether a control is effective as well
As if an item is being recorded properly?
A) statistical sampling
B) dual purpose tests
C) test of balances
D) test of controls

Question

Quizplus · Accepted Answer

Dual purpose tests allow Tobias Appel to both test the effectiveness of controls and substantiate dollar amounts. This type of testing involves selecting a sample of transactions and performing both control testing procedures and substantive testing procedures on the same sample. This allows Tobias Appel to obtain evidence on both the effectiveness of controls and the accuracy of recorded amounts. Statistical sampling and test of balances are more focused on substantiating dollar amounts, while test of controls is more focused on testing the effectiveness of controls only.

Tobias Appel Is Trying to Ensure That He Can Review